Maersk acquires Asian land-based logistics company

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AP Moller-Maersk is buying an Asian warehouse specialist in a transaction worth $3.6 billion in enterprise value, expanding its push into land-based logistics that’s become more profitable than its traditional sea-container business. The world’s biggest container line is acquiring Hong Kong-based LF Logistics in an all-cash deal, it said on Wednesday. With the purchase, Maersk gets an additional 10,000 employees and more than 200 warehouses in 14 countries. Maersk will boost annual revenue in its logistics and services business by about $1bn with the acquisition. The transaction is second only to its $4bn takeover of Hamburg Sud in 2017. This acquisition enables Maersk to expand in land-based logistics where there’s more potential for growth and profit margins are higher. In September, Maersk and CP Railway opened the new Pacific Transload Express facility in the Port of Vancouver and also announced plans to buy air-freight company Senator International as it seeks a presence in all parts of the transport chain.

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