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Prime Mover Magazine

AusPost to acquire full ownership of Aramex Global Solutions

Australia Post is strengthening its international capability by securing full ownership of Aramex Global Solutions (AGS), which provides end-to-end cross-border logistics solutions to a portfolio of iconic global e-commerce merchants.

Australia Post has reached in-principle agreement to purchase from its joint venture partner Aramex PJSC the 60 per cent of AGS it does not already own for approximately US$20 million ($27.7 million).

AGS has grown strongly since it was established by Australia Post and global express delivery and logistics company Aramex two years ago, with revenue up more than 60 per cent since 2016 to approximately $138 million* in 2018.

Australia Post’s exclusive delivery of parcels for AGS in FY18 generated $40 million of revenue.

AGS reportedly enables Australian consumers to shop online globally, connecting international retailers directly with Australia Post’s last-mile delivery and customs clearance capabilities. In addition to delivering significant parcel volumes inbound to Australia, AGS has an established presence in key global eCommerce trade lanes, including Asia, the UK, Europe and the US, providing a valuable platform for continued expansion.

“As a wholly-owned subsidiary of Australia Post, AGS provides an established platform to accelerate our international growth strategy,” International Services Executive General Manager, Annette Carey.

“Combining our postal capabilities with AGS’s bespoke eCommerce capabilities enables Australia Post to engage directly with international retailers, providing unique customer solutions to capture strong growth in cross-border eCommerce markets.

“Today’s agreement with Aramex reflects changes to the strategic direction of both organisations, including Australia Post’s commitment to positioning itself as a global provider of cross-border eCommerce.”

The strength of cross-border eCommerce markets and a highly regarded management team, led by CEO Nabil Zaghloul have underpinned the growth of AGS, which is now handling more than two million international parcels a month.

“At AGS, we’re very excited to benefit from Australia Post’s culture, long-term vision and ongoing investment” said Zaghloul. “Through partnerships with China Post and major Asian eCommerce marketplaces, we can leverage our platform into new markets.”

Transaction completion is expected to occur in the coming days. Australia Post has plans to rename and rebrand AGS to reflect the change in ownership in the near future.

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