Maersk acquires LF Logistics

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Maersk has completed its acquisition of Hong Kong-based contract logistics company LF Logistics. Following the acquisition, LF Logistics will be rebranded to Maersk, with its 223 warehouses added to Maersk’s existing portfolio, bringing the total number of facilities to 549 globally, spread across a total of 9.5 million square meters. LF Logistics employs 10,000 people and operates a Pan-Asian network. It specializes in business-to-business (B2B) and business-to-customer (B2C) distribution solutions within retail, wholesale and e-commerce, and Maersk intends to use it as a base for Asia-Pacific expansion. The transaction is valued at US$3.6bn.

As part of the transaction to acquire LF Logistics, Maersk has entered a strategic partnership with Li & Fung to develop a comprehensive range of end-to-end global supply chain services, with Li & Fung focusing on the upstream supply chain and Maersk focusing on the downstream supply chain. Subject to separate regulatory approvals, the parent company of Li & Fung is expected to retain and continue to build the carved-out GFM business.

Ditlev Blicher, regional managing director of Asia-Pacific at Maersk, said, “I am thrilled to welcome LF Logistics to Maersk. Maersk in Asia has historically been primarily focused on ocean transportation out of Asia, and related logistics services, transporting and managing goods manufactured in Asia for consumer markets in the West and beyond. With the addition of LF Logistics, Maersk gains unique and best-in-class capabilities to service the important and fast-growing consumer markets in Asia. Furthermore, LF Logistics’ expertise in omnichannel fulfillment positions us well with the global e-commerce market.”

Joseph Phi, group CEO of Li & Fung and CEO of LF Logistics, added, “LF Logistics has had an enviable track record of profitable growth in the region for more than two decades. Maersk’s global presence provides an ideal platform for our next phase of organizational expansion and development. The unique and complementary strengths of the two companies will allow our customers to achieve sustainable competitive advantage and our people to attain their full potential. We look forward to a seamless transition experience for our colleagues and customers.”

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