Mergers in the Logistics Industry: A Case Study of JD Logistics’ Acquisition of Deppon Express Using SWOT and CAR Analysis

This study analyzes JD Logistics’ acquisition of Deppon Express using SWOT analysis and an event study to assess its financial performance. The findings show that JD Logistics expanded its market share and strengthened its presence in heavy freight and lower-tier cities. However, challenges such as...

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Bibliographic Details
Main Authors: Dai Shengqing, Wang Lifeng, Wang Muhan
Format: Article
Language:English
Published: EDP Sciences 2025-01-01
Series:SHS Web of Conferences
Online Access:https://www.shs-conferences.org/articles/shsconf/pdf/2025/09/shsconf_icdde2025_01009.pdf
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Summary:This study analyzes JD Logistics’ acquisition of Deppon Express using SWOT analysis and an event study to assess its financial performance. The findings show that JD Logistics expanded its market share and strengthened its presence in heavy freight and lower-tier cities. However, challenges such as cultural differences, high integration costs, and short-term profitability pressures emerged, while weaknesses in air transportation limited international expansion. Financial analysis indicates that market reactions varied. The cumulative abnormal return (CAR) changes before and after the acquisition reflect market recognition. A t-test shows JD Logistics experienced a significant change in abnormal return (P=0.014), indicating a strong market response, while Deppon Express showed no significant change (P=0.37), suggesting uncertainty about its long-term impact. Overall, the acquisition enhanced both companies’ competitiveness and provides insights into M&A strategies in the logistics sector. The study emphasizes the need for optimized management and technological innovation to maximize merger benefits.
ISSN:2261-2424