Indonesia-headquartered courier startup J&T Express has on last Friday announced that it will acquire Shenzhen Fengwang Information Technology Co., Ltd. (Fengwang Information), the owner of Chinese e-commerce logistics provider Shenzhen Fengwang Express Co., Ltd. (Fengwang Express), for RMB1.183 billion ($170.09 million).

J&T Express said in a statement that the firm has entered into a share transfer agreement with Shenzhen Fengwang Holdings Co., Ltd. (Fengwang Holdings), a subsidiary of S.F. Holding Co., Ltd.

Under the agreement, J&T Express’ subsidiary J&T Express (Shenzhen) Supply Chain Co., Ltd. will acquire 100 percent share rights of Fengwang Holding’s wholly-owned subsidiary, Fengwang Information.

According to the statement, this transaction is subject to several prerequisites, the examination of concentrations of undertakings by the State Administration for market regulation, and the transaction consideration being settled in a timely manner according to the share transfer agreement.

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.

According to the statement, Fengwang Express’ network currently covers 27 provinces, municipalities and autonomous regions across China, providing high quality services to e-commerce customers.

In 2022, Fengwang’s revenue exceeded RMB3.2 billion ($460.13 million). The overall network service quality is stable.

J&T Express has expressed its commitment to continuously optimizing the service experience as part of its focus on the e-commerce express delivery service industry.

This acquisition will enhance the integrated service capabilities of J&T Express.

This move is expected to foster high-quality development of the industry allowing it to further increase its competitive advantage in the e-commerce delivery sector and contribute to the high-quality development of the industry.

S.F. said that the resources of two sides are complementary, and this will help ensure the smooth transition of the transaction.

Looking forward, S.F. said it can focus more on the development of its core businesses such as domestic mid-to-high-end express, international express, global supply chain services and digital supply chain services.

Meanwhile, S.F. said it will continue to build e-commerce express delivery products and services and meet the diversified needs of customers in the high-end express delivery market.

J&T Express is a global logistics service provider with leading express delivery businesses in Southeast Asia and China, the largest and fastest-growing market in the world.

Founded in 2015, J&T Express’ network spans thirteen countries, including Indonesia, Vietnam, Malaysia, the Philippines, Thailand, Cambodia, Singapore, China, Saudi Arabia, the UAE, Mexico, Brazil and Egypt.

J&T Express said it is committed to providing customers with integrated logistics solutions through intelligent infrastructure and digital logistics network, as part of its global strategy to connect the world with greater efficiency and bring logistical benefits to all.

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