Dubai-listed courier Aramex confirmed it is in talks to potentially acquire Turkish transportation company MNG Kargo.
Discussions are still in the "early stages" as Aramex is still conducting its initial evaluation, it said in a filing on Sunday to the Dubai Financial Market, where its shares are traded.
"The company’s final decision to acquire MNG Kargo is subject to satisfactory findings of the due diligence process, in addition to the company’s senior management and board of directors' approval," Aramex said. "The total value of this transaction has not yet been determined or agreed upon at this early stage."
Aramex said in May that its strong cash balance would help it execute on future opportunities including acquisitions.
The company confirmed the discussions with MNG Kargo following a Reuters report on September 9. The transaction may be worth as much as $500 million, Reuters said, citing a source.
Founded in 2003, MNG Kargo has more than 850 branches, employs more than 11,000 people and operates approximately 3,500 land transportation vehicles, according to its website.
The delivery services company is owned by Turkish private equity firm Turkven and the Sancak family.
Last week, Aramex said it adopted a new operational structure whereby it split its core businesses into Aramex Express and Aramex Logistics to capture a greater market share of the global logistics industry.
As part of the reorganisation, it appointed Johannes Distler as chief strategy officer, a newly created role to ensure the development and execution of Aramex’s corporate strategy as well as the group’s international expansion and mergers and acquisitions agenda.
Mr Distler joins Aramex from Roland Berger, where he was a partner in the firm’s Dubai office.
Last month, a UAE delegation met Turkish President Recep Tayyip Erdogan in Ankara where the two sides discussed ways of consolidating ties between the UAE and Turkey, particularly in trade, while accelerating opportunities in fields such as transport, health and energy, according to state news agency Wam.
Sheikh Mohamed bin Zayed, Crown Prince and Deputy Supreme Commander of the Armed Forces, also held talks with Mr Erdogan later in August and discussed the prospects of strengthening relations between the UAE and Turkey, the news agency said.
