Before Amazon.ae (AMZN) and Souq.com, there was the region’s darling: Aramex (ARMX). The Dubai-based logistics and package delivery company has come a long way from its early days with it now reportedly being in talks to acquire Turkish delivery company, MNG Kargo.
Due to the pandemic, e-commerce sales saw a sharp increase as physical stores closed down, leading to a growth in the transportation and logistics industry. Aramex was one of the many logistics companies that saw the upside from that e-commerce growth as its Q1 2021 revenues recorded a 24% quarterly increase. As a result, it appointed a new Chief Strategy Officer and listed international expansion through M&A as one of its goals – making MNG Kargo the ideal candidate.
MNG is one of the leading courier services in Turkey with 19 regional offices and 25 sorting hubs.
why it matters
The $500m deal is set to position Aramex favorably in its larger international growth strategy. Despite the good news though, Aramex stock closed yesterday at a 0.3% drop.