TNT in advanced negotiations to acquire Hoau, China’s leading domestic freight & parcels operator
TNT, the leading global provider of Express, Mail and Logistics services, announced today it is in the process of acquiring China’s leading freight and parcels transportation operator, Hoau Logistics Group, based in Heilongjiang.
The deal is expected to be completed in the course of next year. Both companies have signed a Letter of Intent for this purpose.
Through this acquisition, TNT will become the largest privately owned transportation network for freight and parcels in China. TNT already operates the largest distribution infrastructure in China with 140 operating facilities, covering 2.4 million square metres of warehouse space across 600 cities.
Peter Bakker, CEO of TNT said: “The acquisition being negotiated will be a significant step in our China strategy. It will help us realize our ambitions to build the largest domestic transportation network for freight and parcels. In addition, through this acquisition, we hope to make greater contributions to China’s economic growth.”
“Hoau has a solid reputation as the nation’s leading transportation operator. TNT will be able to connect Hoau’s established road transport network with its own global network. Through this combined network, TNT will be able to further strengthen its services for the benefit of both international and domestic customers who need reliable and efficient access to the Chinese market,” said Ken McCall, CEO of TNT China
Wang Zhenhua, President of Hoau said, “Over the past 10 years, Hoau has built a strong and growing position in China’s domestic transportation. With increasing economic globalization, Hoau needs to move to the next level of development to benefit our employees. I am pleased that TNT will help us make the next leap forward.”
Established in 1995, Hoau today has the densest privately owned road network in the country and is currently one of the market leading transportation companies for freight and parcels serving manufacturing as well as other type of clients. Hoau’s network serves over 160,000 customers, dealing with various sectors like FMCG, Components, Appliances, Pharma and High Tech.
It has over 1,100 hubs and depots across China covering all major and second-tier cities with a service fleet of over 3,000 trucks and 12,000 employees. Hoau has been granted the rating of “AAAAA”, the highest category for the transportation industry in China, and its founder and current president, Mr. Wang Zhenhua, has received the honor of “China’s Most Influential Entrepreneur and Business Leader” in the transportation industry.
Hoau will greatly strengthen its capability and leading position in China’s transportation industry via TNT’s injection of resources, network expertise and advanced IT systems. Rated as one of the best employers in China, TNT is committed to stability and further development of Hoau’s management team and employees.
