Chinese logistics companies J&T Global Express and SF Holding have announced a strategic cross-shareholding agreement involving HKD8.3 billion (approximately $1.1 billion) in mutual investments. The deal represents a significant consolidation within China’s competitive logistics sector as companies seek to strengthen their positions in the global market.
Under the agreement, J&T Express will issue 822 million Class B shares to SF Holding at HKD10.10 per share, while SF Holding will issue 226 million H shares to J&T Express at HKD36.74 per share. Upon completion, SF Holding will hold 10% of J&T Express’s issued shares, while J&T Express will hold approximately 4.29% of SF Holding’s issued shares.
Strategic Rationale and Synergies
The collaboration aims to integrate resources between the two logistics leaders to build a more extensive, efficient, and resilient global integrated logistics network. The companies stated this positioning will better serve Chinese companies expanding overseas and adapt to the evolving global e-commerce logistics market.
The cross-shareholding structure is designed to unlock complementary strategic synergies. J&T Express brings its extensive last-mile network and localized operational experience across 13 countries, while SF Holding contributes core resources and mature operating systems in cross-border first-mile and line-haul operations.
Together, the companies plan to enhance network coverage and competitiveness of their end-to-end cross-border logistics solutions. In the China market, complementarities in network resources, customer bases, product structures, and differentiated positioning are expected to create opportunities to expand service boundaries.
China Context and Market Implications
The deal comes as Chinese logistics companies face increasing pressure to support the country’s expanding international trade and the growth of cross-border e-commerce. Both companies emphasized their focus on serving Chinese enterprises going global, reflecting broader trends in China’s economic development strategy.
Company representatives described the agreement as elevating their relationship from operational collaboration to a closer strategic partnership. They indicated plans to work together to build a more efficient global smart logistics network and seize opportunities created by Chinese enterprises expanding internationally.
The transaction represents one of the larger strategic investments in China’s logistics sector in recent years, highlighting the ongoing consolidation and international expansion efforts among Chinese logistics providers. The deal structure, involving cross-shareholding rather than a full merger, allows both companies to maintain operational independence while pursuing strategic alignment.
