DB World is in the final stages of acquiring Cargo Services Far East from Hong Kong business tycoon John Lau, a move that would expand the port operator’s presence in Asia. Sources familiar with the matter revealed that both parties are currently ironing out the details of the deal, and an official announcement is expected in the near future. The acquisition is estimated to be worth between 300 to 400 million dollars, depending on the assets involved.
Cargo Services Far East, founded by John Lau in 1989, specializes in sea freight, merchandise, and cold chain logistics. The company is headquartered in Hong Kong and has offices in various countries such as China, the United Kingdom, South Africa, the United States, and Singapore. Despite being approached for comments, a spokesperson for Cargo declined to provide any information. On the other hand, a representative for DB World has yet to respond to requests for comment.
The acquisition would allow DB World to expand its operations and strengthen its position in the Asian market. Cargo Services Far East’s expertise in cold chain logistics would enable DB World to offer more comprehensive services to customers looking for end-to-end supply chain solutions. With this acquisition, DB World aims to increase its footprint in Asia and take advantage of growing demand for port services across the region.
According to Bloomberg sources close to the matter stated that DB World is paying $400 million for Cargo Services Far East’s acquisition which will give them access to new markets including China and Singapore where they have not had much presence before now.
The move comes after years of growth for both companies. In recent years, Cargo Services Far East has expanded into new markets such as China and South Africa while DB World has been expanding its operations globally.
Overall this acquisition will bring together two powerful players in the port industry allowing them to expand their reach further into Asia’s growing economy while also providing customers with more comprehensive supply chain solutions.
