Based out of China, the supply chain and logistics e-commerce company JD.com announced that it will acquire 99.99% equity in the Ningbo Meishan Baoshui area Deppon Investment Holding company Limited for 8.976 billion yuan ($1.41 billion), accounting the stake of 66.49% in Shanghai-listed Deppon logistics. The announcement was made on March 13 at the Hong Kong Stock Exchange.
Deppon made an announcement on March 11, that the two companies combined, would carry out specific strategic cooperation in the fields of warehousing, express delivery, and supply chain. According to the reports, the chairman of the company, Cui Weixing stated and made it perfectly clear at an internal meeting that the layoff, mergers and other integration circulation in the market would not take place anymore and the company will continue to maintain the individual operation of the brand and team. She also mentioned that she will continue to manage the company and its operations.
JD Logistics is the largest and fastest-growing technology-driven supply chain solution provider in China.
While Deppon made it clear that the company will continue to work as an individual firm, at the same time, the CEO of JD Logistics, Yui Yu stated the principle of cooperation between the two companies and clearly mentioned in an internal management meeting that Deppon will regain the brand value of the company and will be operated independently by the chairman as an A-share listed company. However, for the cooperation, JD Logistics will put every effort and do its best to build new and more development opportunities for Deppon’s employees and management, to help the company grow faster and better.
JD Logistics is the largest and fastest-growing technology-driven supply chain solution provider in China and its neighbouring regions that serves more than 300,000 enterprise customers. According to the financial support of the company, the total revenue generated in the year 2021 was 104.7 billion yuan, out of which 71.1 yuan was from customers from the integrated supply chain and the rest of 33.6 billion yuan was from other customers, that also includes express delivery of the company.
Established on August 6, in the year 2009, Deppon logistics is a complete logistics service provider that helps link logistics, express delivery, warehousing, cross-border services, and supply chains with the help of its already existing business stores which are more than 30,000, over 2,000 trunk lines and 140 warehouses in China.
Deppon logistics is a complete logistics service provider that helps link logistics, express delivery, warehousing, and various other services.
According to the records of the company, JD Logistics has over 300,000 front-line employees in China and over 1.300 warehouses as of December 31, 2021. The company has been successful in achieving same day and next day deliveries in almost 93% of countries and districts and 84% of townships across China, which has helped a lot for the company to grow in the business with its services.
Looking at the layout and positioning of JD Logistics in the express logistics industry, the company has made some remarkable acquisitions like Kuayue Express and has also controlled Dada Group and CNLP. After the acquisition of Deppon Logistics, the company will now involve in bulk delivery, air cargo and other on-demand deliveries and overseas logistics services.