Amazon.com, Inc to Acquire French Delivery Company Colis Prive
Amazon.com Inc (NASDAQ:AMZN)continues to make strong efforts in its mission to change the face of retail. The latest of these efforts reportedly revolves around the company s mission to vertically integrate the logistics aspect of its business by adding distribution. According to a report published earlier on Seattle Times, Amazon is gearing to acquire the French package delivery company, Colis Prive. Amazon would reportedly purchase 75% stake in Colis Prive. The buyout is expected to close out during the first half of 2016. Baird analyst Colin Sebastian believes that the acquisition would further strengthen the firm s thesis that Amazon aims to build its very own distribution chain. Mr. Sebastian adds that in addition to building its logistics network for in-house purposes it will also offer delivery services to third-party companies. A representative from Colis Prive in an interview with a French newspaper, notes that the company would continue to build its commercial portfolio and not restrict its services to Amazon alone. As such the move would not only give Amazon a competitive edge in the retail market; it will also place it head to head against package delivery giants such as FedEx and UPS. It might take a while however for Amazon to emerge as a solid competitor in the delivery space given that the company lacks requisite scale. Additionally the spokesperson from Colis Prive added that the acquisition would not in anyway hamper the company s existing with logistics providers such as FedEx and DHL. Amazon officials have declined to comment on the company’s plan for its shipping business.
Mr. Sebastian values long-term logisitics market for Amazon at $400 quite close to that of the company s cloud wing AWS that has seen remarkable growth in recent years. The analyst currently has a Buy rating and a $710 price target on Amazon stock.