Emirati logistics giant DP World is in talks to acquire Hong Kong-based Cargo Services Far East, Bloomberg reports, citing sources in the know. DP World is working with an undisclosed financial adviser on the potential transaction, which could value the Hong-Kong-based firm at an estimated USD 800 mn, the sources said. Negotiations are still ongoing and other bidders may emerge, they added.

About the company: Cargo Services Far East — owned by Hong Kong tycoon John Lau — operates in cold chain logistics, ocean and freight shipping, and fashion distribution, according to Bloomberg. The company has offices in 35 cities in China, Singapore, Australia, South Africa, and the US.

What’s on the table? Earlier this year, interest from potential buyers left Lau — who also owns a majority stake in Hong Kong-listed CN Logistics International and a significant minority stake in logistics firm EV Cargo — considering his options for a sale of his logistics assets, Bloomberg reported earlier. An agreement could involve a single buyer for all of the assets, or multiple transactions involving several different companies, Bloomberg said, citing sources with knowledge of the matter.

DP World has been expanding its presence in East Asia: In November 2022, DP World signed an agreement to help develop a trade zone in Shanghai, China, according to Zaywa. The company also has a joint venture with Goodman Group, which owns a logistics center in Kwai Chung Container Terminals in Hong Kong.

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