Chinese e-commerce giant JD.com Inc announced that its subsidiary JD Logistics Inc has agreed to buy domestic courier Deppon Logistics Co Ltd. Under the deal, JD Logistics will acquire 99.99per cent equity stake in Deppon Holdco for a total consideration of about 9 billion yuan ($1.42 billion). Deppon Holdco owns a total of about 66.50per cent of Deppon Logistics. JD Logistics will then make an offer for all the issued shares of Deppon Logistics not held by Deppon Holdco.
JD Logistics offers supply chain and logistics services for e-commerce industry. It offers supply chain solutions including warehousing, transportation, order sorting, loading into truck, order delivery, and after-sale services. JD Logistics operates an unmanned sorting center, and it also uses drones to deliver online purchases to rural shoppers. It began operation in 2017, with its headquarters in Beijing in China, and it operates as a subsidiary of JD.com. JD Logistics is the largest player in China’s integrated supply chain logistics services market in terms of total revenue in 2020.