J&T Express to acquire China-based Fengwang Express for $170m

J&T Express, a global logistics service provider, has agreed to acquire Shenzhen Fengwang Information Technology (Fengwang Information), the owner of Shenzhen Fengwang Express (Fengwang Express), from Shenzhen Fengwang Holding for RMB 1.183 billion ($170 million).

Shenzhen Fengwang Holdings is a subsidiary of Chinese logistics service provider S.F. Holding.

J&T Express has been making significant strides in the e-commerce express delivery sector since its entry into the Chinese market in 2020. The company has successfully acquired Best Inc.’s express business in China in late 2021.

Presently, the network of Fengwang Express caters to e-commerce customers and covers 27 provinces, municipalities, and autonomous regions in China. Last year, Fengwang Express’ revenue is said to have surpassed RMB 3.2 billion ($460 million).

J&T Express has expressed its determination to continually improve the customer experience in its efforts to specialization in the express delivery business. The acquisition will boost the capabilities of integrated services offered by J&T Express.

This acquisition is expected to encourage an industry-wide development that is high-quality and allow it to enhance its competitive advantages in the field of delivery via e-commerce and aid in the quality development of the sector.

S.F. declared that the capabilities of both sides are complemented and will aid in the smooth flow of the transaction. In the future, S.F. will be focusing on the growth of its core businesses, such as domestic mid-to high-end express international express as well as global supply chain service along with digital supply chain service.

Meanwhile, S.F. continues to develop online express delivery products and services to fulfill the varied requirements of clients in the high-end express delivery industry.

The transaction is subject to various prerequisites, the Chinese State Administration for Market Regulation’s Examination of Concentrations of Undertakings and the consideration of the deal being settled in a timely manner as per the share transfer agreement.