Mergers and acquisitions in the transport and logistics sector increased sharply in the past six months. Globally, 123 transactions took place. That is 23 more than in the second half of last year. E-commerce is a key driver behind the acquisitions.
This is according to figures from PricewaterhouseCoopers (PwC) in the hands of Flows.be. The 123 transactions accounted for $63.4 billion. Logistics and road transport accounted for the largest number of transactions at 37 per cent.
Blackstone and DSV
The most substantial transaction came from US investment group Blackstone, which bought $18.7 billion worth of logistics real estate. Closer to home was DSV's acquisition of logistics service provider Panalpina, which bought its Swiss counterpart for €4.1 billion. That acquisition at a stroke made DSV the fourth largest global transport company, after DHL, KUEHNE + Nagel and DB Schenker.
Logistics has strategic role in e-commerce
PwC says growth in mergers and acquisitions due to online sales. Logistics is of great strategic importance in e-commerce, so the Blackstone acquisition was e-commerce-related. Moreover, the Brexit and the trade conflict between the US and China are creating uncertain times, against which investors are trying to arm themselves with infrastructure acquisitions. These investments offer lower but stable returns.
Second half 2019
For the second half of this year, PwC expects another positive development in the number of mergers and acquisitions. Then, too, e-commerce will play a major role.
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