State-owned Japan Post Holdings Co Ltd has agreed a A$6.5 billion ($5.1 billion) takeover of Australia's biggest freight and logistics firm, Toll Holdings, as the Japanese financial giant embarks on an ambitious global expansion.
In one of Australia's biggest inbound acquisitions, Japan Post offered a 49 percent premium to Toll's last closing price, a valuation deemed "compelling" by the Australian firm's directors who unanimously recommended it.
"Together this will be a very powerful combination and one of the world's top five logistics companies," Toll Chairman Ray Horsburgh said in a statement on Wednesday.
Japan Post said it would use Toll's own experience in doing offshore deals to step up acquisitions throughout Asia, Europe and North America to become a global logistics leader.
Japan Post, one of the world's biggest financial institutions with net assets of some 13.8 trillion yen ($115 billion), is looking to expand beyond its home market where the population has been shrinking and the economy is struggling to take off after two decades of stagnation.