Li & Fung, the leading Hong Kong-based sourcing company, and Maersk, the world’s largest container shipping company, have agreed to form a strategic partnership to offer a more comprehensive range of end-to-end global supply chain services by utilizing their respective resources.
As part of the deal, Li & Fung has agreed to transfer its 78.3 percent stake in its logistics business, LF Logistics, to Maersk for an enterprise value of $3.6 billion. The remaining stake of 21.7 percent is held since 2019 by Temasek, the sovereign wealth fund of Singapore. According to Li & Fung, the business has been recording double-digit annual growth over the past decade, with a particularly strong performance in e-logistics and omni-channel fulfillment.
Besides its strong shipping capabilities, Maersk will bring to the table an extensive warehousing network covering the fast-growing Asia-Pacific markets.
Executive of both companies emphasized the benefits of the partnership and of a diverse global supply chain network in view of the major supply chain disruptions caused by the Covid epidemic.
Based in Copenhagen, Maersk has subsidiaries and offices in 130 countries. It has around 83,000 employees. Aided by increased freight rates, Maersk reached Ebitda of $6.9 billion in the third quarter of this year, 202 percent up from the year-ago period, on a 68 percent increase in revenues to $16.6 billion.
