TNT Express has sold Hoau, its domestic road operation in China, to private equity funds under the management of CITIC PE.
Hoau has a network of about 1,500 depots, covering more than 600 cities. TNT expects to close the deal in the second half of 2013 with settlement of part of the purchase price to be cleared in 2014.
After completion of the transaction, TNT Express will continue to develop its international express delivery service to and from China. TNT International Express has 3,000 employees and a network of 36 depots across mainland China and international gateways in Beijing, Shanghai, and Shenzhen.
The sale of the domestic businesses in China and Brazil is part of TNT’s plan to make recurring savings of €220m by 2015.