Chinese domestic media reported on Wednesday that logistics firm JD.com has recently completed an acquisition of competitor Deppon Express.
As early as January 6, 2022, rumors emerged that JD Logistics had acquired Deppon Express, although this was then denied by the firm. The news came from a screenshot circulating online indicating that Deppon internally made the official announcement of the acquisition and that Cui Weixing, chairman and general manager of Deppon Express, would quit and JD.com would assign senior management personnel to take over.
Founded in 1996, Deppon Express reached $2.6 billion in revenue in 2010. Then, in 2018, Cui Weixing led Deppon to be listed on the A-share market through the rotating partner CEO system.
By the same year, Deppon Logistics was renamed as Deppon Express and became fully engaged in the large-item express business sector, but the transition was not smooth. From 2018 to 2021, revenue from itsexpress business declined annually, while revenue from its courier business grew slowly. Its net profits fell by nearly 90%. On February 28, 2022, Deppon suspended trading, and the director’s office confirmed that the company would be acquired.
One domestic media outlet, tech621, learned from a source at JD Logistics that the two parties had started contacting each other around 2019, but that the negotiations were seemingly less than smooth. Back then, JD also acquired Kuayue Express, another company specializing in rapid delivery services, for 3 billion yuan.
In addition, on February 25 this year, JD announced plans to subscribe for common shares of Dada Group for $546 million. Upon the purchase, JD’s shareholding ratio in Dada increased from 46.46% to about 52%.