Global logistics giant Kuehne+Nagel has strategically acquired City Zone Express to strengthen its cross-border road logistics services in the dynamic Asia-Pacific market. The move, which requires regulatory and shareholder approval, is seen as a crucial step for Kuehne + Nagel to respond to the region's rapidly growing e-commerce and high-tech industries.
Strategic expansion in Asia Pacific
The acquisition of Malaysia-based City Zone Express, a subsidiary of Singapore-listed Chasen Holdings, marks an important milestone for Kuehne+Nagel. With operations in key Asian markets such as Malaysia, Singapore, Vietnam, Thailand and China, City Zone Express is well-positioned to strengthen his Kuehne + Nagel service offering in the region. Although financial details of the transaction were not disclosed, the acquisition is expected to be immediately accretive to Kuehne+Nagel's revenues, indicating strong confidence in the strategic benefits of the partnership.
Responding to market demand
Kuehne+Nagel's acquisition of City Zone Express is a timely response in the face of an evolving logistics market, particularly in Asia, where demand for e-commerce and high-tech products is rapidly increasing. The move not only expands the Swiss logistics giant's footprint in the Asia-Pacific region, but also strengthens its ability to meet the dynamic needs of customers in the region. This acquisition underscores Kuehne+Nagel's commitment to investing in its network and services to support the key industries driving growth in Asia.
Financial and business highlights
In parallel with the acquisition announcement, Kuehne + Nagel also disclosed its financial results for the final quarter of 2023. The company reported net profit of 283 million Swiss francs ($320 million), lower than a year earlier, and sales were down 35%. amounted to CHF 5.69 billion. However, for the full year, net profit rose to CHF 1.46 billion, in line with expectations. Furthermore, Kuehne+Nagel announced plans to pay an adjusted dividend of CHF 10 in 2022 from CHF 14, reflecting its strategic response to market conditions and its continued commitment to shareholder value.
The logistics sector is watching closely as Kuehne+Nagel integrates City Zone Express into its extensive network. The acquisition not only marks Kuehne+Nagel's ambitious expansion in the Asia-Pacific region, but also represents a strategic opportunity for cross-border road logistics services in supporting the region's thriving e-commerce and high-tech industries. It also highlights the importance. With this move, Kuehne+Nagel is well-positioned to navigate the challenges and opportunities of the global logistics environment and drive growth and innovation along the way.
