FedEx Unveils Strategic Acquisition Deal in Southern Africa
FedEx Corp. (NYSE: FDX) announced that it has completed the first stage of a strategic acquisition by signing agreements to acquire the businesses operated by its current service provider Supaswift (Pty) Ltd. in five countries in Southern Africa, including South Africa, Malawi, Mozambique, Swaziland and Zambia, and is also in discussions to acquire Supaswift’s businesses in Botswana and Namibia.
These acquisitions will operate under the FedEx Express business unit and the transaction is subject to necessary regulatory approvals and customary closing conditions.
“It is an important step in our international growth strategy and further strengthens our FedEx Express portfolio.”
Once the acquisition is completed, FedEx Express will have direct access across the seven markets to 39 facilities and will welcome approximately 1,000 of Supaswift’s team members, who will join the ranks of more than 300,000 FedEx team members globally. FedEx Express will then offer a complete suite of FedEx branded export, import and domestic solutions, connecting Southern Africa to more than 220 countries and territories worldwide, enhancing customers’ business flexibility and speed to market.
“The acquisition of Supaswift’s businesses, once closed, will provide customers with greater access to some of the world’s most rapidly growing economies,” said Frederick W. Smith, Chairman, President and Chief Executive Officer of FedEx Corp. “It is an important step in our international growth strategy and further strengthens our FedEx Express portfolio.”
Gerald P. Leary, President of FedEx Express Europe, Middle East, Indian Subcontinent and Africa, added: “FedEx Express has been active in Africa since the early 1990s, through a well-established network of Global Service Providers. This acquisition, once completed, will reaffirm our support to customers in this region.”
The integration of Supaswift’s businesses will commence once the transaction has been closed and is expected to be achieved gradually over a number of months.
Category: General Update
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