E-commerce giant JD.com announced on 13th March that its subsidiary JD Logistics plans to buy domestic courier Deppon Logistics Co Ltd.
Under the deal, JD Logistics will acquire approximately 99.99 percent of the equity interest in Deppon Holdco, which in turn holds a total of approximately 66.50 percent of Deppon Logistics, for a total consideration of approximately RMB9 billion (US$1.42 billion). The transactions are subject to a staggered acquisition arrangement and certain customary closing conditions, including relevant regulatory approvals.
Upon completion of the proposed transactions, Deppon Holdco (including Deppon and its subsidiaries) will become a subsidiary of JD Logistics, and its financial results will be consolidated into JD Logistics’ consolidated financial statements.
Founded in 1996, Deppon is an integrated, customer-centered logistics company providing a wide range of solutions including Less-Than-Truckload (LTL) transportation, Full Truck Load (FTL) transportation, delivery services, and warehousing management in China. As of June of 2021, it counted more than 30,000 service stations across China, 143 transfer centers with more than 1.8 million square meters, and more than 15,000 vehicles, according to Bloomberg.