Business

Shipping giant Maersk buys e-commerce firms

Group acquiring Visible Supply Chain Management, B2C Europe

Updated 4 years ago · Published on 07 Aug 2021 9:30AM

Shipping giant Maersk buys e-commerce firms
Maersk’ s net profit rose to US$3.7 billion between April and June, a nearly ninefold increase from the same period last year, beating expectations. – AFP pic, August 7, 2021

COPENHAGEN – Danish maritime transport giant Maersk said yesterday it is buying two e-commerce companies as surging demand for shipping led to another bumper profit in the second quarter.

The group is acquiring Visible Supply Chain Management, a US e-commerce logistics provider valued at US$838 million (RM3.5 billion), and B2C Europe, which specialises in cross-border parcel delivery services and is valued at US$86 million.

“Our earnings and cash flow enable us to further accelerate our transformation, invest in growing the business, also through targeted acquisitions,” chief executive Soren Skou said in a statement.

“These two companies will further accelerate our logistics growth particularly in e-commerce by adding technology and last mile delivery capabilities for our customers in the United States and Europe.”

Maersk’ s net profit rose to US$3.7 billion between April and June, a nearly ninefold increase from the same period last year, beating expectations.

That was higher than what the group made in the full-year 2020.

As a result of the pandemic, demand for shipping has surged since mid-2020 and especially since the end of the year, in particular from Asia to the US and Europe.

Shipping companies and analysts attribute the rise to consumers purchasing more manufactured products, instead of spending their money on trips and restaurants and other experiences.

Additionally, many companies are still in the process of restocking after reducing their orders in the first months of the pandemic. – AFP, August 7, 2021

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