In addition to this partnership, Li & Fung has entered into a transaction for Maersk to acquire its logistics business, LF Logistics Holdings Limited, and its various entities, valuing the business at 3.6 billion dollars on an enterprise value basis. Joseph Phi, Group CEO of Li & Fung and CEO of LF Logistics, will continue as the group CEO of Li & Fung after the transaction closes and will no longer serve as the CEO of LF Logistics.
Commenting on the development, Spencer Fung, group executive chairman of Li & Fung, said in a release: “We are very pleased to have reached this agreement with Maersk. The divestment of LF Logistics will further simplify our business to focus on our core trading and supply chain digitalization capabilities, which have seen a strong rebound back to pre-Covid levels.”
LF Logistics is jointly owned with Temasek, the Singapore sovereign wealth fund, where Li & Fung holds 78.3 percent and Temasek holds 21.7 percent of the company. The company has consistently registered double-digit growth over the past decade and has a strong track record in e-logistics and omnichannel fulfillment.
The company added that this strategic partnership follows the recent formation of LFX, focusing on digital ventures, investments, and supply chain finance with GLP, its Singapore-based partner, as Li & Fung continues its journey of helping customers navigate the new digital economy.
“We are excited, and we look forward to strengthening our global logistics business and welcoming 10,000 new logistics experts from a customer-centric culture with well-executed operations. With the intended acquisition of LF Logistics, we will bring in an extensive warehousing network covering the fast-growing Asia-Pacific markets,” added Vincent Clerc, CEO of Ocean & Logistics at Maersk.