AP Moller bets big on Philippine logistics
Global logistics and transportation giant AP Moller Capital has raised its stake in the Philippines via the Ayala Group, which is selling 40 percent of its 4-year-old logistics arm to the Danish company as demand for its services grows.
Ayala Corp., the country’s oldest conglomerate, said in a statement on Thursday that it had signed an agreement with AP Moller Capital, through EMIF II Holding III BV, for the latter to buy part of AC Logistics.
Both firms did not disclose further details, including the transaction amount, noting that discussions about the final subscription price were ongoing.
For its part, Ayala said AP Moller Capital’s investment would allow it to scale the operations of AC Logistics, whose main business includes supply chain services across the country.
“A country of 7,000 islands requires considerable logistics infrastructure, and we would like to help address this need,” Ayala president and CEO Cezar Consing said.
AP Moller Capital is the asset management unit of transportation and logistics giant AP Moller Group. It currently has around $2 billion in assets under management and 16,000 employees, AP Moller said on its website.
In 2023, the group announced plans to invest at least $750 million in South and Southeast Asia.
According to Ayala, the planned acquisition will likewise aid in addressing the country’s “growing and increasingly more complex” logistics requirements while contributing to food security.
“This potential transaction with AP Moller Capital reflects Ayala’s strong commitment to growing AC Logistics into an industry leader that will deliver high-quality logistics solutions for the Philippines,” AC Logistics president and CEO Erry Hardianto said.
This also marks another significant investment in the Philippines for AP Moller.
Last year, AP Moller Maersk, through Maersk Contract Logistics, inaugurated its 10-hectare flagship warehouse in Calamba City, Laguna, representing its largest distribution center in the country.
The facility has a storage capacity of 76,000 pallets, and it will serve as Maersk’s transport hub for southern Luzon.
AC Logistics portfolio
Founded in 2021, AC Logistics currently operates end-to-end logistics services, including cross-border freight forwarding and warehousing for business-to-business customers.
It acquired 60 percent of Air 21 Holdings Inc. in August 2022 before eventually increasing its stake in the logistics firm to 80 percent.
In December 2023, Ayala transferred the operations and assets of Entrego, which was focused on domestic logistics, to the Air21 Group, citing profitability challenges.
