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Xinhai Electric to give $2.7 billion deal for Yunda Express

Staff writer |
China's Xinhai Electric will acquire courier company Shanghai Yunda Express for 18 billion yuan ($2.7 billion) via an asset swap and share issue.

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The deal will effectively give Yunda Express a listing on the Shenzhen stock exchange.

"The listed company's lighter business and other key operations have been slowing due to the wider economic climate," Xinhai Electric said on Friday.

"This transaction will allow the company to transform itself into a courier and logistics company, a sector that the government has been trying to develop."

The express delivery sector grew by about 50 percent a year between 2010 and 2014 and handled 14 billion parcels last year, data from the State Post Bureau showed.

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