April 16, 2024

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[THE INVESTOR] CJ Logistics, formerly CJ Korea Express, is still interested in acquiring Gemadept Logistics, a Vietnamese logistics and real estate firm, according to its CEO Park Geun-tae on Sept. 25.

“We have sought to acquire logistics firms in Southeast Asia under our goal of becoming one of the top five firms in the industry globally,” Park said in a recent interview with a local media. “So, we are still interested in Vietnam’s Gemadept.”

The CEO’s comments suggest the firm is renewing its bid to acquire the largest logistics companies in Vietnam against its crosstown rival Tae Kwang Industrial.

Tae Kwang seemed to gain the upper hand till June when it signed a memorandum of understanding to acquire convertible bonds from Vietnamese Investment Group, which was seeking to sell its stake in Gemadept. But sources say the two firms have recently failed to reach an agreement on the deal price. Tae Kwang reportedly suggested about 500 billion won (US$442 million) as the buying price.

In the meantime, CJ Logistics has acquired a slew of Chinese and Southeast Asian logistics firms in recent years. Last year, the firm acquired a 31.4 percent stake in Malaysia’s Century Logistics and a 50 percent in China Shenzen Speedex Commercial Service for a combined 130 billion won. In April this year, the firm also announced two purchases -- UAE’s Ibrakom and India’s Darcl Logistics.

About the ongoing talks, both CJ and Tae Kwang officials declined to comment, saying nothing has been decided yet.

By Park Ga-young (gypark@heraldcorp.com)