Deutsche Post rumored to buy Sinotrans joint venture
Reports from the Xinhua news agency suggest that Deutsche Post World Net is moving to buy out Sinotrans from its Exel-Sinotrans Freight Forwarding joint venture. The reports cite the CEO of Sinotrans indicating in April that he would be interested in selling the Chinese logistics company’s stake in the joint venture.
The reports also quote the president of DHL China and South Korea as saying that the DHL is in negotiations with Sinotrans about the holding, but that a deal has not been reached.
DPWN already owns 50% of the business which has revenues of more than €300m.
Exel-Sinotrans was established before DPWN bought Exel. Although it is described as a freight forwarder, it aims to offer a complete suite of logistics services including contract logistics. It focus is orientated towards southern China and serving traffic between Hong Kong and the Pearl River Delta.
Sinotrans is at present engaged in complex manoeuvres to restructure its capital base and to re-align its corporate strategy. It is moving much of its assets into companies quoted on the Hong Kong stock exchange in order to raise capital and be less reliant on loans from state banks.
DHL has announced a string of investments in China both for its logistics business and its Express operations. It now has wholly owned Express operations, but its logistics businesses are a mixture of wholly owned companies and joint-ventures. Of the latter its Danzas-ZF Freight forwarder is probably the most important.
