TNT Express, the Dutch express delivery service provider has announced the sale of Hoau, its domestic road business in China. The buyer is a private equity fund managed by CITIC Private Equity.
The announcement did not provide for any financial details. The move was precipitated by the European Commission's disapproval of its acquisition by United Parcel Service for US$7 billion. With little or no other options, it has opted to undertake a new standalone strategy after competition concerns of the EU regulator were highlighted.
TNT Express has already announced that it would be selling its domestic operations in both China and Brazul after losses incurred in both 2011 and 2012. In China, its main business is Hoau, one of the leading domestic road distribution service providers and the country's leading domestic delivery service providers. The company has a domestic road distribution network of 1,500 depots that cover 600 major cities all across China.
According to TNT Express Interim CEO Bernard Bot, "In the past few years, Hoau has transformed itself into a leading nationwide operator in China. The change of ownership secures the ongoing growth and development of the company. TNT Express will focus on offering the broadest range of international services to and from China."
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