Hitachi Ltd. and Sagawa Express Co. agreed Wednesday to buy stakes in each other¡¯s distribution businesses as competition among Japanese logistics companies intensifies.
Hitachi Transport System Ltd. will buy 20 percent of Sagawa Express Co. for ?66.3 billion ($591 million) from its parent SG Holdings Co., according to a joint statement Wednesday. Closely held SG Holdings will also buy 29 percent of Hitachi Transport for ?87.6 billion, the statement showed.
Sagawa, Japan¡¯s second-largest courier service, and Hitachi Transport may also eventually merge, according to two people familiar with the situation, who asked not to be identified because the information isn¡¯t public. Japan Post Holdings Co. and Kintetsu World Express Inc. have been leading a reorganization of the delivery and logistics business in Japan with takeovers last year.
Hitachi Transport has bought stakes in companies to help its expansion domestically and overseas, including Turkey¡¯s Mars Logistics Group, Hong Kong¡¯s CDS Freight Holding Ltd. in 2013 and Japan¡¯s Vantec Corp. in 2011.
SG Holdings has also expanded overseas, opening a delivery service in Vietnam and forming a business alliance with Korea¡¯s Hanjin Transportation Co. in 2011 and China Courier Service Corp. in 2006.
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