Yellow Roadway May Buy Interest in Chinese Forwarder

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ellow Roadway Corp. may buy 50% of a Chinese freight-forwarding business to gain a foothold in that country, Bloomberg reported Friday.

The less-than-truckload carrier was considering paying $50 million for the shares of JHJ International Transportation Co., based in Shanghai, Bloomberg said.

The proposed bid beat out one by Netherlands-based TNT NV, the second-largest package delivery company in Europe, Bloomberg reported.

Yellow Roadway could issue an announcement on the deal as soon as next week, Bloomberg said. The two companies also plan to form a logistics joint venture, it reported.

The Financial Times reported in May that Yellow Roadway may be targeting operations in China, in response to growing demand from western importers for reliable freight transportation services in that country. (Click here for previous coverage.)

Yellow Roadway is No. 3 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.