Chinese e-commerce giant JD.com on Sunday said that its subsidiary JD Logistics has agreed to buy domestic courier Deppon Logistics.

The target company is a Mainland Chinese trucking and warehousing operation which according to records from last year has 140 warehouses, 143 sorting centres and a payroll of 63,700.

Under the deal, JD Logistics will acquire 99.99 per cent equity stake in Deppon Holdco for a total consideration of about 9 billion yuan (US$1.42 billion). Deppon Holdco owns a total of about 66.50 per cent of Deppon Logistics.

JD Logistics will then make an offer for all the issued shares of Deppon Logistics not held by Deppon Holdco, for 13.15 yuan per share.

“The transaction is subject to a staggered acquisition arrangement and certain customary closing conditions, including relevant regulatory approvals,” the company said in a statement.

• Reporting by Shivani Tanna in Bengaluru, Editing by Louise Heavens, of Reuters.