(Yicai Global) June 14 -- Chinese express delivery giant S.F. Holding is expected to acquire a stake in Indonesian courier J&T Express, Securities Times reported yesterday, citing people familiar with the matter, even though the pair have neither confirmed nor denied it.

A tie-up between the two is expected though the reported size of the stake is inaccurate, the people told the newspaper.

News on social media yesterday said that S.F. is in talks with J&T over taking a 1 percent or 2 percent stake, with the investment amount and cooperation details still under discussion. J&T declined to comment on the rumors, while S.F. did not respond, according to Securities Times.

Shares of S.F. [SHE: 002352] gained 0.8 percent today to close at CNY49.14 (USD6.86) each. The wider Shenzhen market rose 0.3 percent.

S.F. and J&T have their own core business, but also related businesses, the report cited express delivery expert Zhao Xiaomin as saying. The Chinese firm’s advantage lie in the high-end delivery business and one of J&T’s is its Southeast Asian business, he noted, adding that the two businesses have a higher entry threshold and require long-term development.

Through a tie-up, they can cooperate in a broader market to maximize their respective values and achieve complementary advantages, Zhao noted.

Founded in Indonesia in 2015, J&T entered the Chinese mainland market in 2019 and its daily orders there have topped 40 million parcels.

Last month, J&T spent CNY1.2 billion (USD167.6 million) to acquire all of Shenzhen Fengwang Information Technology, under a branch of S.F. targeting e-commerce clients, via a local unit. Fengwang Information Technology operates across 27 of China’s 31 provincial-level administrations.

As a leader in the Chinese express delivery field, S.F. seeks to expand its global logistics network. In 2021, it become the second-biggest courier in Southeast Asia after acquiring Kerry Logistics Network. Kerry was a fierce competitor of J&T in Thailand.

Editor: Peter Thomas