A.P. Moller-Maersk A/S is in advanced talks to acquire LF Logistics for around $3 billion, according to people familiar with the matter, a move that would give the ocean shipping giant a network of warehouses.
An announcement could come as soon as Wednesday, assuming the talks don’t break down, the people said.
Maersk
AMKBY,
+0.26%
MAERSK.A,
+0.68%,
the world’s largest container shipping line by capacity, has been reaping the benefits of the rattled global supply strains that have pushed up ocean freight rates to record levels this year and caused backlogs at U.S. ports.
It has been using acquisitions to expand beyond ocean freight into inland logistics. It wants to capture a bigger share of the market moving goods between Asian and U.S. ports, and then from ports into warehouses or businesses and even the last mile to a person’s home.
By acquiring LF Logistics, an arm of Hong Kong supply-chain manager Li & Fung Ltd., Maersk gains control of a network of 223 distribution centers across Asia and more than 250 customers globally, according to LF’s website. LF also provides freight forwarding services for retailers, manufacturers and other cargo owners.
An expanded version of this report appears on WSJ.com.
Also popular on WSJ.com:
American workers are burned out, and bosses are struggling to respond.
The pet-food shortage is real, and owners are scrambling. ‘It’s been a waking nightmare.’
