Shipping giant A.P. Møller – Mærsk has completed a $3.6 billion purchase of the Hong Kong based LF Logistics from Li & Fung & Temasek. The purchase deal was struck in December last year, with Maersk noting that an earn-out with a total value of up to $160 million related to future financial performance has been agreed as part of the transaction. 

LF Logistics is a contract logistics company, with premium capabilities within omnichannel fulfilment services, e-commerce, and inland transport in the Asia-Pacific region. LF Logistics, with its Asia-Pacific wide footprint and industry leading fulfilment capabilities, matches Maersk’s strategic intent to support customers’ supply chain needs end-to-end as a trusted partner in control of the assets. With the acquisition, Maersk adds 223 warehouses to the existing portfolio.

All regulatory approvals have now been obtained and the acquisition was closed.

The acquisition is expected to unlock substantial commercial synergies deriving from cross selling LF Logistics’ fulfilment products to Maersk’s customers, and cross-selling of Maersk’s logistics services within “Managed by” and “Transported by Maersk” to LF Logistics’ customers. In addition, minor cost synergies are expected from combining the two businesses.

Overall APMM guidance for 2022 remains unchanged as the net impact on underlying result from the consolidation of LF Logistics will be immaterial in 2022.