CJ Group to merge logistics and delivery subsidiaries

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CJ Group to merge logistics and delivery subsidiaries

CJ Group, a food and entertainment conglomerate, plans to merge CJ Korea Express and CJ GLS under its wing next year, industry sources said yesterday.

The merged entity will be launched on Jan. 1, with leading local logistics company CJ Korea Express, which is listed on the main bourse, absorbing the unlisted CJ GLS, the nation’s second-largest delivery company, they said.

The merged company is expected to grab up to 35 percent of the local logistics market, the sources said.
CJ Group put CJ Korea Express, formerly known as Korea Express, under its wing late last year.

The group signed a deal to buy a major 37.62 percent stake in Korea Express for 1.85 trillion won ($1.6 billion) from Kumho Asiana Group in July 2011.

CJ Group also plans to keep CJ Korea Express listed on the local main bourse after the merger, the sources said, adding that job cuts will be inevitable in overlapping business areas. Early in September, CJ Korea Express said in a regulatory filing that it is considering taking over Phoenix International, a U.S. logistics firm. It did not reveal more details.

Yonhap

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