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Dubai Courier Firm Aramex Buys Florida MyUS for $265 Mln

An employee walks at the distribution warehouse unit at the Aramex Emirates head offices and freight and logistics facility at Dubai Logistics City in Jebel Ali April 10, 2012. REUTERS/Jumana El Heloueh/File Photo
An employee walks at the distribution warehouse unit at the Aramex Emirates head offices and freight and logistics facility at Dubai Logistics City in Jebel Ali April 10, 2012. REUTERS/Jumana El Heloueh/File Photo
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Dubai Courier Firm Aramex Buys Florida MyUS for $265 Mln

An employee walks at the distribution warehouse unit at the Aramex Emirates head offices and freight and logistics facility at Dubai Logistics City in Jebel Ali April 10, 2012. REUTERS/Jumana El Heloueh/File Photo
An employee walks at the distribution warehouse unit at the Aramex Emirates head offices and freight and logistics facility at Dubai Logistics City in Jebel Ali April 10, 2012. REUTERS/Jumana El Heloueh/File Photo

Dubai-listed courier firm Aramex said on Wednesday it had bought Florida-based e-commerce company Access USA Shipping LLC (MyUS) for about $265 million in an all-cash deal.

The transaction, after having obtained all the necessary regulatory approvals, marks Aramex’s largest acquisition to date, it said.

Abu Dhabi sovereign wealth fund ADQ holds a 22.32% stake in Aramex, transferred to ADQ-owned Abu Dhabi Ports in January. Abu Dhabi Ports made its stock market debut in February, raising 4 billion dirhams ($1.09 billion).

"As a result of this acquisition, MyUS will be fully integrated into Aramex's business", operating as a unit of its courier segment, Aramex said in a statement.

It said MyUS will retain its brand and "be complementary to Shop & Ship, Aramex's subscription-based last mile e-commerce solutions platform".

Aramex said the announced purchase price is subject to "customary adjustments.”

The takeover will help Aramex grow its cross-border express business by growing and diversifying its customer base and expanding coverage, it said.

Aramex said that in 2021, MyUS generated more than $100 million in revenue and delivered 1.1 million packages to customers who shop from retailers based in the US, UK and China. The company has about 180,000 active customers.

"Our shareholders will immediately see the impact on financial performance, and over the long term we can unlock further value through operational and cost synergies," Aramex Chief Executive Othman Aljeda said in the statement.

MyUS CEO Ramesh Bulusu said in the same statement the company would take its services to new markets by leveraging "Aramex's extensive global network... in markets exhibiting very attractive characteristics such as the MENA region, the UK and Australia."

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IMF: Middle East Conflict Escalation Could Have Significant Economic Consequences

Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
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IMF: Middle East Conflict Escalation Could Have Significant Economic Consequences

Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki

The International Monetary Fund said on Thursday that an escalation of the conflict in the Middle East could have significant economic ramifications for the region and the global economy, but commodity prices remain below the highs of the past year.

IMF spokesperson Julie Kozack told a regular news briefing that the Fund is closely monitoring the situation in southern Lebanon with "grave concern" and offered condolences for the loss of life.

"The potential for further escalation of the conflict heightens risks and uncertainty and could have significant economic ramifications for the region and beyond," Kozack said.

According to Reuters, she said it was too early to predict specific impacts on the global economy, but noted that economies in the region have already suffered greatly, especially in Gaza, where the civilian population "faces dire socioeconomic conditions, a humanitarian crisis and insufficient aid deliveries.

The IMF estimates that Gaza's GDP declined 86% in the first half of 2024, Kozack said, while the West Bank's first-half GDP likely declined 25%, with prospects of a further deterioration.

Israel's GDP contracted by about 20% in the fourth quarter of 2023 after the conflict began, and the country has seen only a partial recovery in the first half of 2024, she added.
The IMF will update its economic projections for all countries and the global economy later in October when the global lender and World Bank hold their fall meetings in Washington.
"In Lebanon, the recent intensification of the conflict is exacerbating the country's already fragile macroeconomic and social situation," Kozack said, referring to Israel's airstrikes on Hezbollah in Lebanon.
"The conflict has inflicted a heavy human toll on the country, and it has damaged physical infrastructure."
The main channels for the conflict to impact the global economy have been through higher commodity prices, including oil and grains, as well as increased shipping costs, as vessels avoid potential missile attacks by Yemen's Houthis on vessels in the Red Sea, Kozack said. But commodity prices are currently lower than their peaks in the past year.
"I just emphasize once again that we're closely monitoring the situation, and this is a situation of great concern and very high uncertainty," she added.
Lebanon in 2022 reached a staff-level agreement with the IMF on a potential loan program, but there has been insufficient progress on required reforms, Kozack said.
"We are prepared to engage with Lebanon on a possible financing program when the situation is appropriate to do so, but it would necessitate that the actions can be taken and decisive policy measures can be taken," Kozack added. "We are currently supporting Lebanon through capacity development assistance and other areas where possible."