Analysis of JD.com's Acquisition of Deppon

Abstract

The old logistics company Deppon. founded in 1996, whose market value after listing was as high as 30 billion yuan. Contemporarily, the era of Internet e-commerce has arrived, the main express Deppon wants to share in this market in 2018 to optimize the original business, expand the transportation business of large express delivery. However, this transformation has put it into decline. Its new business growth was sluggish, and express revenue growth declined and market value has been falling. After the sharp drop in value, JD Logistics a logistics giant with a market value of more than 100 billion yuan, made an acquisition. After this acquisition, the two companies have integrated their businesses, complemented each other's advantages, and achieved great advantages in the fierce market competition. According to the analysis, the acquisition will improve the concentration of logistics industry in China and is beneficial to the healthy development of logistics industry. Overall, these results shed light on guiding further exploration of the significance of mergers and acquisitions.