Toll's shopping spree extends to China

The decision to buy the remaining shares in ST-Anda Logistics was a “critical element” of Toll’s growth strategy, managing director Paul Little said.

“Our Chinese logistics operations is of strategic significance to Toll’s international business,” he said.

“Moving ST-Anda to a wholly owned subsidiary will give Toll the opportunity to better integrate our operations within China and offer a more seamless total logistics solution to our existing customers both within China and in a more global setting.”

Shenzhen-based ST-Anda Logistics has warehouses and depots in more than 30 cities and a distribution network which stretches across 1500 cities in China.

Mr Little said the acquisition would also help Toll Group forge better relationships with its major clients in China, which include fast-moving consumer goods makers Colgate Palmolive and Johnson & Johnson.

The acquisition was subject to Chinese regulatory approval, which would likely be in three to six months, Mr Little said.

A spokesman for Toll declined to say how much the company paid for 49% of the Shenzhen-based company because of a confidentiality clause.

In a push to improve scope and scale, Toll announced on Friday it would buy 40% of India’s BIC Logistics, with scope to acquire a majority shareholding over the next two years.

In the year ended March 31, BIC Logistics recorded a revenue of more than Rupee 1.3bn ($37m).

“This acquisition makes Toll one of the most significant foreign investors in India’s transport and logistics industry,” Mr Little said last week, adding that the investment would be instantly earnings per share accretive.