News / CJ Korea Express boosts its global ambitions with buys in India and UAE

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Acquisitive CJ Korea Express has reiterated its aim to become a top-five global logistics company by 2020, and is eyeing deals in Europe and the US.

Meanwhile, the company has bought majority stakes in two forwarders in a bid to create a pan-Asian network.

It has become the largest shareholder in Indian logistics service provider Darcl Logistics, with a 50% stake. The overland specialist is ranked India’s top haulage firm and third-largest in distribution, according to media reports.

It has also acquired a 51% stake in Ibrakom Group, a Middle Eastern and Central Asian project and heavylift forwarder.

CJ Korea has been in an acquisitive mode for some time. Last year it was in talks to buy CEVA, which were ultimately unsuccessful, but CEO Park Gun-tae told media this week there were more deals to be done.

“We are diversifying our channels for M&As and strategic alliances to step up as one of the five major logistics service providers in the world.

“We will also prepare [for] huge M&A deals with American and European players.”

In 2015, CJ bought China’s  Rokin Logistics for $400m and has since expanded considerably in China, while also looking to develop its business in South-east Asia. It has also recently acquired stakes in Malaysian, Indonesian and Philippine companies.

It also failed to acquire APL Logistics in 2015, being pipped at the post by Kintetsu, which paid $1.2bn for NOL’s logistics arm. CJ then expressed interest in Korea’s Daewoo Logistics, but again a sale failed to materialise.

Meanwhile, UPS is in talks to buy Logen, Korea’s fifth-largest parcel delivery company.