FedEx expands African business in strategic acquisition
The global courier services company, is to acquire business operations of South Africa’s Supaswift (Pty) Limited and its subsidiaries in seven African countries.
FedEx announced June 20, 2013 that it has completed the “first stage of a strategic acquisition by signing agreements to acquire the businesses operated by its current service provider Supaswift (Pty) Ltd. in South Africa and four other countries, including Malawi, Mozambique, Swaziland and Zambia.”
The company says it is also in discussions to acquire Supaswift’s businesses in Botswana and Namibia.
“These acquisitions will operate under the FedEx Express business unit and the transaction is subject to necessary regulatory approvals and customary closing conditions,” the company said in a statement.
Once the acquisition is completed, FedEx indicated that it will have direct access across the seven markets to 39 facilities and will welcome approximately 1,000 of Supaswift’s team members, who will join the ranks of more than 300,000 FedEx team members globally.
“The acquisition of Supaswift’s businesses, once closed, will provide customers with greater access to some of the world’s most rapidly growing economies,” said Frederick W. Smith, Chairman, President and Chief Executive Officer of FedEx Corp.
The integration of Supaswift’s businesses will commence once the transaction has been closed, FedEx added.
Supaswift started operations in South Africa in 1990.
By Ekow Quandzie