TNT Express sells China road operations to Citic Private Equity
28 Mar 2013
TNT Express NV, Europe's second-largest package-delivery company after Deutsche Post, today said that it has sold its domestic road operations in China (Hoau) to private equity funds managed by Citic.
The Dutch firm did not reveal the financial terms of the deal, but said that a part of the agreed price will be paid in 2014.
Hoau is one of China's leading domestic road distribution service providers and a leader in delivery services. It operates an extensive domestic road distribution network with about 1,500 depots, covering more than 600 cities.
Commenting on the deal, TNT Express interim CEO Bernard Bot said, "In the past few years, Hoau has transformed itself into a leading nationwide operator in China. The change of ownership secures the ongoing growth and development of the company. TNT Express will focus on offering the broadest range of international services to and from China."
After completion of the transaction, TNT Express said that it will continue to develop its international express delivery service to and from China.
TNT International Express has 3,000 employees and a network of 36 depots across mainland China and 3 international gateways in Beijing, Shanghai, and Shenzhen.
Last week the Netherlands-based company said that it would cut 4,000 jobs as part of restructuring after regulators blocked its $6.85-billion merger with United Parcel Service. (See: TNT Express to cut 4,000 jobs as part of restructuring)
Apart from cutting 6 per cent of its 68,628 global workforce, TNT Express said that it would soon divest its loss-making operations in China and Brazil.
The company, which has 47 cargo planes, is also exploring options to reduce its exposure to intercontinental capacity, including capacity-sharing agreements, subleases and lease terminations.
