The US retail giant Amazon is making a huge investment in Germany’s logistics system, making it the first company in the world to own a logistics company that makes its own supplies and is independent from the US company.
The company will acquire Schneider Logistics and Schneider Automotive, which make logistics supplies for Amazon, as part of the $1.7 billion deal announced Wednesday.
Amazon will pay $1 a share for Schneider, which has more than $2 billion in assets and employs more than 300,000 people.
The deal will create a logistics network that makes up more than half of Amazon’s $11 billion in revenue.
It also makes Amazon the largest logistics provider in the US, surpassing the likes of FedEx and UPS, according to the deal’s regulatory filings.
Schneider is the world’s largest logistics company, operating more than 2,400 warehouses, 7,200 truck stops and 1,300 distribution centers.
It employs more of the US population than the rest of the country combined.
Schreider’s stock price has risen sharply since the deal was announced, reaching a high of $16.20 in October.
Amazon said the transaction would add approximately $1 million to its earnings in the third quarter.
The new logistics network will help Amazon build its online grocery shopping platform, with the logistics company said to be the largest supplier of online groceries in the country.
The transaction is expected to be completed by the end of the year.
Schweider Automotive is a joint venture between Amazon and a subsidiary of Volkswagen AG.
Schrieblage, a logistics and logistics consulting firm in Berlin, has been hired by Amazon to help the company in developing the logistics network, the company said in a statement.
Schmidt Automotive had been in talks with Amazon for some time, according the statement.