Posted April. 27, 2017 07:24,
Updated April. 27, 2017 07:31
CJ Korea Express has acquired local logistic service providers of India and the United Arab Emirates (UAE). The recent acquisitions come as a step forward to become one of the world’s top five logistics players by building a logistics infrastructure that encompasses the entire Asian region.
The Korean logistics giant has become the largest shareholder of Darcl Logistics Ltd. after signing an agreement of acquiring 50 percent of shares of the Indian logistics company. With its service provided on land, rail, and maritime, Darcl is ranked as the No. 1 transporter and No. 3 in total distribution. In other words, CJ Korea Express has gained a foothold in making inroads into the Indian logistics market where the world’s second-most population resides and shows high potentials for growth.
Furthermore, CJ also announced it would acquire 51 percent of UAE logistics service provider Ibrakom Group at 77.3 billion won. As the unchallenged weight freighter in the Middle East and Central Asia, it transports gigantic shipments including petrochemical, drilling, desalination plants, shipbuilding blocks and large steel bridge structures. Thanks to its global network stretching from the Middle East (Dubai, Iran, Iraq) to Central Asia (Turkmenistan and Uzbekistan), CJ Korea Express has now secured higher grounds in the weight logistics market where various plants and construction demands are concentrated.
Since its first acquisition of the Chinese Smart Cargo in April 2013, CJ succeeded in mergers and acquisitions (M&A) with Chinese, Malaysian, Indonesian, and Philippine freighters. With two more groups added to their organization chart, CJ has built a pan-Asian logistics network. “We are currently diversifying our channels for M&As and strategic alliances to step up as one of the five major logistics service providers in the world," said Park Geun-tae, CEO of CJ Korea Express. "We will also prepare huge M&A deals with American and European players."