DHL to acquire Exel-Sinotrans

DHL has reached an agreement with Sinotrans Air Transportation Development Co.Ltd. (Sinoair) to buy the remaining 50% stake of the Exel-Sinotrans Freight, a joint venture between Sinoair and DHL, sources reported yesterday.

Founded on May 15, 1996, Exel-Sinotrans Freight is jointly invested by Sinoair and Exel. With main business on international transport agency of cargo imports and exports, Exel-Sinotrans has a registered capital of US$2.92 million and its net profit amounted to RMB 74.14 million in 2006.

Sinoair declared earlier to put its 50% stake for auction at a minimum price of RMB 628.5 million, which was finally acquired by DHL. At present DHL has the main customer of Exel-Sinotrans and focuses on the express delivery, logistics and supply chain management.

It has been reported that DHL has sped up its operations in China by investing US$175 million to build the DHL Express North Asia hub, which add the total investment of DHL in Asia-Pacific area to US$2.2 billion.