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FedEx Now Wholly Foreign-owned in China
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FedEx, the world's largest express delivery company, has purchased the remaining shares in its former joint venture with a Tianjin-based company, paving the way for it to reinforce its delivery network in China.

David Cunningham, FedEx's Asia Pacific president, said the US$400 million purchase is a significant step for the company's long-term strategy in China.

FedEx took over the remaining 50 percent stake in the Datian-FedEx Express Delivery joint venture, which had been held by its former partner Datian Group Co Ltd. FedEx also now owns Datian's delivery stations in 89 Chinese cities and regions as well as 6,000 Datian's former employees in the delivery sector.

The deal was made on January 24, and is pending approval from the relevant government departments.

FedEx entered China in 1984, and set up a joint venture with Datian, a major Chinese transportation handler, in 1999. The deal will enable FedEx to optimize delivery services in China, especially in inland regions.

China became the world's second largest air cargo transportation market in 2005, and expects an average annual growth rate above 10 percent through to 2023.

(Xinhua News Agency February 5, 2006)

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