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VOL. 37 | NO. 25 | Friday, June 21, 2013
Fedex to buy Supaswift operations in 5 countries
MEMPHIS (AP) — FedEx Corp. said Thursday that it has agreed to buy businesses operated by its current service provider in five Southern African countries. Financial terms were not disclosed.
The deals cover Supaswift (Pty) Ltd.'s operations in South Africa, Malawi, Mozambique, Swaziland and Zambia. Fedex said it's also in talks to buy Supaswift's businesses in Botswana and Namibia.
The acquired businesses will operate under the FedEx Express business unit, Fedex said.
The deal will give FedEx Express direct access across the seven markets to 39 facilities. About 1,000 of Supaswift's workers will join Fedex, the company said.
Fedex said the acquisition will give customers greater access to some of the world's most rapidly growing economies and strengthen its FedEx Express operations.
Supaswift started operations in South Africa in 1990. In 2005, it combined with MyExpress Pty Ltd., which had been offering FedEx Express international services in Southern Africa since 1991.
The acquisition announcement comes a day after Fedex announced a better-than-expected fiscal fourth-quarter profit, but issued disappointing guidance for the current year.
In premarket trading, its shares fell $2.67, or 2.7 percent, to $97.87 amid a broader decline ahead of the market opening.