JD: JD.com, SF, Carlyle among bidders for CJ Group’s $1 billion China logistics business: Sources – Latest News
CJ Group has employed Morgan Stanley to run the sale of Shanghai-based CJ Rokin Logistics Provide Chain Co, which it acquired in 2015 by way of CJ Logistics Corp.
It comes as e-commerce in China has boomed through the coronavirus pandemic, benefiting the logistics sector. China’s financial system has additionally seen a gradual restoration from the COVID-19 shock.
First-round bidders additionally embrace actual property and expertise corporations in addition to different monetary sponsors and trade friends, mentioned the sources, declining to be named as a result of confidentiality restraints.
The deal might worth CJ Rokin at over 7 billion yuan ($1.1 billion), with ultimate bids due in January, two of the sources mentioned.
A CJ Logistics spokesman declined to remark, as did Morgan Stanley and Carlyle. CJ Rokin couldn’t be reached for remark. JD.com and SF didn’t reply to requests for remark.
The entire worth of products transported by way of the logistics sector rose 2% year-on-year to 202.5 trillion yuan within the first 9 months of 2020, in response to information from China Federation of Logistics & Buying.
Mergers and acquisitions in China’s logistics sector have jumped 53% year-on-year to $2.3 billion this yr, in response to Refinitiv information.
Established by brothers Zhang Yurong and Zhang Yuqing in 1997, CJ Rokin focuses on chilly chain and chemical merchandise transportation, in response to its web site.
Chilly chain storage and transportation have grow to be more and more essential through the COVID-19 pandemic, which has killed over 1 million individuals, because the promising Pfizer vaccine for instance is required to be saved at temperatures of minus 70 levels Celsius (-94 F) or under.
