Shipping Giant Maersk Clinches $3.6B Acquisition Deal for LF Logistics

Shipping giant AP Moeller-Maersk AS has signed off on a $3.6 billion acquisition deal for omnichannel fulfillment company LF Logistics Holdings, according to a Wednesday (Dec. 22) press release. The deal is expected to close in 2022.

Maersk CEO Soren Skou said in the release that the acquisition is a “strategic milestone” in the company’s quest to “become the global integrator of container logistics” that offers the latest digital “end-to-end logistics solutions based on control of critical assets.”

Skou added in the release that with LF Logistics, Maersk adds “critical capabilities in Asia Pacific” (APAC) that will support our clients’ growth there, and advance and scale new “capabilities and technology.”

See also: Shipping, Logistics Costs Expected to Keep Rising in 2022

Maersk operates in 130 countries and employs about 95,000 people, according to the release. LF Logistics has a big foothold in the APAC region, as well as industry-leading fulfillment capabilities that complement Maersk’s strategy to meet customers’ end-to-end supply chain needs. With LF Logistics, Maersk gains 223 warehouses, bringing its total to 549 worldwide.

According to its website, Maserk is the largest container shipping company in the world, moving 12 million containers every year. Its services include ocean transport, inland shipping, intercontinental rail and air freight.

Read also: US Multinational Businesses Wait 53% Longer to Receive Cross-Border Payments Than Domestic Payments

“With this move, we will boost our warehousing and distribution offering and respond to the rapidly growing needs of our customers for contract logistics,” said Maersk CEO of Ocean and Logistics Vincent Clerc in the release. “Guided by a customer-centric culture and well-executed operations, LF Logistics has built an unparalleled track record of executing a superior omnichannel strategy for customers, which is a unique position we can use to build and operate fulfillment to customers across our network.”