Study on the Motives and Performance of J&T Express's Acquisition of Best Express from a Value Chain Perspective

Abstract

China’s express delivery industry faces intense competition, where persistent price wars have driven down profit margins, adversely affecting both corporate sustainability and sectoral development. In this context,mergers and acquisitions (M&A)have emerged as a strategic pathway to mitigate price-based competition. Against this backdrop, J&T Express’s acquisition of Best Express’s domestic operations for RMB 6.8 billion (≈USD 1.06 billion) stands as anindustry-defining event. Grounded invalue chain theory, this study investigates the motives behind J&T Express’s acquisition of Best Express and evaluates its post-acquisition performance using integratedfinancial and non-financial metrics. The findings reveal that the acquisition was primarily driven byvalue chain integration needs, aiming to enhanceend-to-end competitivenessthroughresource complementarity, network optimization, andcost synergies. Post-acquisition, J&T achieved measurable improvements across both financial and operational dimensions. However, challenges persist inintegration risks, debt structure imbalances, andtechnological synergy gaps. This research demonstrates howresource integrationenables firms to achievehigh-quality developmentin anon-price-based competitionenvironment. It proposes actionable optimization strategies, offering theoretical and practical insights forvalue chain reconstruction and M&A strategy designin the logistics industry.