- 31 August 2015
- Transport / Logistics Services
Global logistics group Singapore Post has bought two stakes in Hong Kong e-commerce, warehousing and logistics businesses that will enable it to grow its e-commerce business in the city. These will strengthen its grip in Hong Kong, which is a major gateway to China from the rest of the world.
The group has bought a 33% stake in Hong Kong based Morning Post & Logistics for HKD39.6 million (USD $5.1 million). The acquisition will help SingPost consolidate its documents and parcel delivery services in Hong Kong, which is often seen as a major gateway to China.
Morning Express has a good last mile capability in Hong Kong and extends the global logistics group’s reach in e-commerce, warehousing and freight forwarding in the region.
Singapore Post has also bought a 50% stake in Hong Kong based E Link Station, a parcel locker and redemption business, for USD$1.03 million. With e-commerce increasingly moving toward click and collect services for greater customer convenience, Singapore Post has been extending its reach into this market, giving clients more outlets to use.
Dr Wolfgang Baier, CEO of Singapore Post, said of this acquisition, “ELink is an extension of how we approach parcel deliveries elsewhere in many parts of the world – that is, we give customers flexibility through multiple channels.”
Both acquisitions have been paid for using cash resources from within the company, and neither will impact the company’s overall earnings for the financial year ending in March 2016.