By P.R. Venkat

JD.com Inc. plans to buy a majority stake in Shanghai-listed Deppon Logistics Co. for 9 billion yuan ($1.42 billion) as part of efforts by the e-commerce company to boost its freight and warehousing network.

JD Logistics will initially buy a 66.50% stake in Deppon Logistics from Deppon Holdco, after which a mandatory offer for the remaining shares will be made at CNY13.15 a share, JD.com said Sunday.

"The transaction is subject to a staggered acquisition arrangement and certain customary closing conditions, including relevant regulatory approvals," the company said.

Deppon's shares rose 10.03% to CNY13.93 on news of the stake purchase, while JD.com's stock was down 10.1% at HK$189.80.

Some analysts say the deal will strengthen JD's capabilities, given Deppon's extensive network and infrastructure.

"We are positive on the deal and see clear synergies and decent potential for efficiency improvement for Deppon including optimization of labor, structure and technology with assistance from JDLn (JD Logistics)," Citi said in a note.

Deppon Logistics is a trucking and warehousing company in China. As of the first half of 2021, it had 140 warehouses and 143 sorting centers and employed 63,700 delivery staff.


Write to P.R. Venkat at venkat.pr@wsj.com


(END) Dow Jones Newswires

03-13-22 2238ET