China Merchants Americold Logistics Company Limited (CMAC), the 51-49 joint venture established between China Merchants Holdings (International) Co. and Americold Realty Trust, has completed the acquisition of 70 per cent of China Merchants International Cold Chain (Shenzhen) Co Ltd (CMCC) from CMHI.

"The establishment of CMAC with Americold, and the acquisition of KXL and injection of CMCC enables CMHI to solidify CMAC as China's premier third-party temperature-controlled logistics provider, operating an integrated nationwide platform across 15 cities in China," said CMHI chairman Fu Yuning.

"As CMHI's platform for cold chain services, CMAC plans to develop and promote cold chain logistics services in the broad consumer goods market in China," said Dr Fu.

The joint venture also signed a definitive agreement to acquire KangXin Logistics (KXL) from Rich Products Corporation for HK$700 million (US$90 million) for both transactions. CMHI and Americold will fund these transactions in accordance to their respective proportional share ownership in CMAC.

KXL, a joint venture subsidiary of Rich, is a third-party cold-chain logistics (3PL) company, serving multi-national food companies as well as Rich's own warehousing and distribution needs in China.

            Source: shipping online