DHL Expands in Saudi Arabia with AJEX Stake Acquisition

Deal News | Feb 25, 2025 | Zawya

DHL Expands in Saudi Arabia with AJEX Stake Acquisition

DHL eCommerce, a unit of the logistics giant DHL Group, is set to acquire a minority stake in Saudi Arabia's AJEX Logistics Services. This strategic move heralds DHL's deeper involvement in the kingdom’s parcel logistics market. According to Pablo Ciano, CEO of DHL eCommerce, Saudi Arabia's promising growth dynamics and strong economic development were significant motivators for the acquisition. AJEX Logistics, a key player with over 50 facilities and a 900-vehicle fleet, specializes in domestic parcel processing and delivery. Though this acquisition reflects DHL's long-standing commitment to Saudi Arabia, where it first launched operations in 1970, the deal is still subject to regulatory approvals.

Sectors

  • Logistics and Transportation
  • E-commerce

Geography

  • Saudi Arabia – The acquisition targets a company based in Saudi Arabia and aims to expand DHL's market presence in this kingdom.
  • Germany – DHL Group is a Germany-based multinational, hence its activities are intertwined with German business interests.

Industry

  • Logistics and Transportation – The acquisition involves major stakeholders in the logistics and parcel delivery industry, with DHL expanding its footprint in Saudi Arabia's logistics sector.
  • E-commerce – DHL's eCommerce unit is driving the acquisition, highlighting the growing significance of e-commerce in logistics and supply chains.

Financials

    Participants

    NameRoleTypeDescription
    DHL eCommerceBidding CompanyCompanyA division of DHL Group focusing on eCommerce and parcel delivery services.
    AJEX Logistics ServicesTarget CompanyCompanyA Saudi-based logistics firm specializing in parcel processing and delivery.
    Pablo CianoCEO of DHL eCommercePeopleChief Executive Officer of DHL's eCommerce unit, leading the acquisition strategy.