FedEx raises stake in Chinese express business
FedEx Express has entered an agreement with Tianjin Datian W. Group Co. to buy out its 50-percent share of the FedEx-DTW International Priority express joint venture and DTW Group’s domestic express network in China for $400 million.
When the deal closes, FedEx will employ more than 6,000 workers in China. FedEx said the transaction is still subject to government approvals and licensing.
“This acquisition deepens our engagement with the China market,” said David L. Cunningham Jr., president of Asia Pacific for FedEx Express, in a statement Tuesday. “Cities outside the eastern seaboard, like Wuhan — which is itself twice the population of Los Angeles — are a crucial part of growing China’s economy and vital to the long-term growth of FedEx in this region.”
FedEx was the first express carrier to enter the China market in 1984. The company serves China with 23 frequencies per week, and plans to add three more in March.
Earlier this month, FedEx started construction of a new $150 million Asia Pacific hub in Guangzhou, which will employ about 1,200 workers.