UPS Jetair Express, domestic arm of the US-based logistics major United Parcel Services (UPS), is in talks to acquire Mumbai-based logistics company Air Freight (AFL).According to sources, both parties have been engaged in discussions over the last few months and the deal is expected to be valued at around Rs 300 crore.AFL however denied that it is talks with UPS Jetair Express.
UPS is looking at acquiring both the existing divisions of AFL; the third party logistics (3PL) arm, AFL Logistics and the express courier arm, AFL Wiz. According to sources, the FY 07’ turnover of both the entities is close to Rs 150 crore and Rs 30 crore, respectively, although, both are loss-making companies.The figures could not be confirmed as AFL is not a public-listed company.
If the deal gets through, it will strengthen UPS’ operations in India considering that three of its major global competitors—DHL, FedEx and TNT—have already created significant presence in India through acquisitions of domestic companies.
Read more in The Economic Times article.
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