Denmark-based AP Moller-Maersk has reached an agreement with Hong Kong-based LF Logistics for about $3 billion, the Wall Street Journal reported late on Tuesday, citing people familiar with the matter.
 
The announcement for the deal could come as soon as Wednesday, assuming the talks don't break down, the report added.
 
LF Logistics operates an extensive Pan-Asian network and is the supply chain partner of choice for companies looking to grow in the Asia-Pacific region.
 
A specialist in B2B and B2C distribution solutions within retail, wholesale, and e-commerce, LF logistics is privately owned company by Li & Fung (78.3%) and Temasek Holdings (21.7%).
It boasts premium capabilities within omnichannel fulfilment services, e-commerce, and inland transport in the Asia-Pacific region.
 
According to Maersk, the Hong Kong group's deep customer relations and operational excellence is a strong base for Maersk to expand within Asia-Pacific and globally.
With the intended acquisition, Maersk will add 223 warehouses to the existing portfolio, bringing the total number of facilities to 549 globally, spread across a total of 9.5 million sq m.
"The acquisition of LF Logistics is an important and truly strategic milestone on our journey to become the global integrator of container logistics; a global logistics company that provide digitally enabled end-to-end logistics solutions based on control of critical assets," remarked Soren Skou, CEO of Maersk.
 
"With this buy, we add critical capabilities in Asia Pacific to support our customers long term growth in Asia Pacific as well as capabilities and technology we can scale in our contract logistics business globally
 
As part of the agreement to acquire LF Logistics, Maersk will enter a strategic partnership with Li & Fung to develop logistics solutions," he added.
Joseph Phi, CEO of LF Logistics, said: "We recognize that for LF Logistics to be a global leader in the industry, achieving scale is of paramount importance. Maersk provides the ideal fit for our people and our customers."
 
"It has a substantial presence around the world and will utilize LF Logistics’ talent base and operational platform across Asia to build out its logistics and fulfillment offering globally. This is testament to the strength of our team, our unique operations-centric culture, and superb growth potential. Together we will deliver a compelling value proposition that allows our people to attain their full potential and our customers to achieve sustainable competitive advantage," he added.

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