The Swiss logistics company, Kuehne and Nagel International (K&N), is to join forces with Singapore's SembCorp Logistics. The two companies are taking a 20 per cent stake in each other as part of a strategic alliance to expand their customer base.
SembCorp said in a statement that it would issue 35.5 million new shares, or 20 per cent of its enlarged share capital, as part of the deal. K&N will subscribe to about 10.7 million shares and the remainder will be placed privately.
K&N in turn will issue 400,000 new shares at SFr1,275 ($704) each to SembCorp, which will also buy 80,000 existing shares at the same price.
The stake, which represents 20 per cent of K&N's enlarged share capital, will cost the Singaporean firm about SFr617 million.
SembCorp said in August that it had begun talks with European and US firms on forming a global logistics alliance by the end of the year, and was willing to give up a 20 per cent stake to achieve that goal.
K&N, founded in 1890, is one of the world's leading freight forwarding companies and transports goods by rail, road, sea and air to destinations worldwide.
It is also active in ocean shipping, insurance brokerage and travel agencies.
swissinfo with agencies