US transportation firm buys 65% stake in Jiayu Logistics

YRC Logistics, a leading US transportation company, yesterday announced it has acquired a 65 percent stake in Shanghai Jiayu Logistics Co Ltd for $44.7 million in a bid to cash in on the country's huge market potential in road transportation.

Jiayu is one of China's largest trucking companies with over 300 trailers and more than 200 subsidiaries across the country.

YRC Logistics will purchase the remaining 35 percent stake of Jiayu in 2010, for up to $39 million, depending on the level of Jiayu's financial performance, the Kansas-based firm said in a press release.