South Korean conglomerate CJ Group's leading logistic company CJ Korea Express will merge with CJ GLS. This will create the nation's biggest logistic company worth US$5.1 billion.
CJ Korea Express announced that it plans to merge with CJ GLS by a ratio of one to 0.3337633 and the scheduled date for the merger was April 1.
After the merger, the stakeholders of CJ Korea Express will include CJ Cheil Jedang (20.1 percent), KX Holdings (20.1 percent), Daewoo Construction (5.3 percent) and Asiana Airlines (five percent). CJ Cheil Jedang and CJ GLS now own a 20.08 percent stake in CJ Korea Express, respectively. CJ Korea Express's merger with CJ GLS will automatically cancel CJ GLS's stakes in CJ Korea express.
CJ Korea Express leads the domestic market in the field of land transportation, shipping port and delivery service while CJ GLS is the nation's best player in the domestic distribution area. The planned merger is likely to create synergy effects for both companies, said industry experts.