Chinese e-commerce giant JD.com is in advanced talks to acquire a controlling stake in storage facilities manager China Logistics Property Holdings for an undisclosed sum, Bloomberg News reported on Thursday, citing people familiar with the matter.
China Logistics Chairman Li Shifa and private equity firm RRJ Capital have put more than 50 percent of the firm up for sale, seeking a valuation of about $2 billion, according to the report.
Shares of China Logistics surged nearly 14 percent in Hong Kong trading earlier on Thursday before they were suspended, pending inside information from the company.
The companies have not made a final decision, and talks could still fall apart, according to the report. JD and China Logistics did not immediately respond to Reuters requests for comment.
JD.com has benefited from a spike in online shopping due to the Covid-19 pandemic. Its strategy of holding inventory and having full control of its in-house delivery network has also helped it compete with larger rival Alibaba Group, which outsources its logistics operations to third-party firms.
Earlier this week, JD told investors it does not expect any business impact from a wave of regulations hitting the Chinese industry, after beating analysts’ expectations for the quarter through June.
- Reporting by Akanksha Rana and Anushka Trivedi in Bengaluru; Editing by Ramakrishnan M., of Reuters.