JD Logistics announced that it has reached a strategic cooperation with Deppon Logistics. JD Logistics will acquire 66.49% of Debon shares for 8.976 billion yuan. The two parties will carry out in-depth cooperation in the fields of express delivery, cross-border, warehousing and supply chain.
At the recent internal management meeting of JD Logistics, Yu Rui, CEO of JD Logistics, clearly stated the principle of cooperation between the two companies, that is, the Deppon brand will still be retained, and Deppon will continue to operate independently as an A-share listed company. It is reported that at the internal meeting, regarding the acquisition of Debon, Yu Rui, CEO of JD Logistics, once said, “We are together to do great things, not to be involved in introversion, nor to eliminate anyone. This market is very large.”
For the purpose of integration, JD.com will use the acquisition of Deppon Holdings, the controlling shareholder of the listed company, as leverage, which will trigger a general tender offer for the purpose of “terminating the listing status of Debon shares”. This means that once JD.com successfully “swallows” Debon, the latter may voluntarily delist, becoming one of the rare “privatization delisting” cases in my country’s A-share market for the purpose of acquisition and integration.