CJ Korea Express Corp., South Korea’s largest courier service company, said Thursday that it has bought a leading logistics company in Malaysia to expand its footprint in the Southeast Asian logistics sector.
It bought a 31.44 percent stake in Century Logistics Holdings Berhad through its Singapore-based subsidiary CJ Korea Asia Pte Ltd. for 47.1 billion won ($43.1 million), becoming the largest shareholder in the Malaysian firm and commanding the largest logistics firm in Malaysia.
Founded in 1970, Century Logisitics runs eight logistics centers and a fleet of 600 delivery trucks. It recorded about $74 million in sales last year. It also has Halal certification, which is essential to do business in an Islamic community.
A company official said that the merger will allow the Korean firm to be the dominant player in the Malaysian logistics sector.
On top of that, its food making affiliate CJ Cheiljedang Corp. would also benefit from the merger as the firm has been tapping into the Halal food market. CJ Cheiljedang exports Halal foods to Malaysia and Singapore.
CJ Korea Express has entered 23 countries and runs 22 bases across 8 Southeast Asian countries including Indonesia, Thailand, Philippines and Vietnam. The company has been expanding aggressively recently, acquiring Chinese logistics firm Rokin last year and setting up a delivery service firm CJ Speedex.
