ADQ, the Abu Dhabi-based holding company, announced oon Thursday that it has acquired a 22 percent stake in Aramex, the global provider of logistics and transportation solutions.

The shares were acquired through a series of on-market transactions and through an off-market special deal, the company said in a statement, with disclosing the value of the deal.

ADQ was established in 2018 and holds a broad portfolio of major enterprises spanning key sectors including utilities, tourism and hospitality, aviation, transportation, logistics, industrial, real estate, media, healthcare, food and agriculture, and financial services.  

Murtaza Hussain, acting chief investment officer, M&A and Alternative Investments at ADQ, said: “Despite the challenging market conditions, we are confident that Aramex has the right approach to continue building on its leadership position in the industry and enhances Abu Dhabi’s efforts to be a key player in international trade and logistics.

"With the surge in e-commerce demand this year, their on-the-ground operations and last mile capacity is an important growth area.”

Last month, Dubai-based Aramex reported a 23 percent drop in Q2 profit, which it said was due to several “unforeseen costs prompted by the global onslaught of Covid-19”.

Aramex reported net profit of AED94.4 million for the quarter, with revenues up 4 percent compared to the same period last year.

Overall shipment volumes grew by 26 percent following a surge in e-commerce activities resulting from increased online shopping during coronavirus related lockdown. Aramex also reported increased demand for healthcare-related shipments.

Aramex said disruptions in cross-border operations due to border closures at the height of lockdown, and an increase in line haul costs impacted profit margins in both international express and freight.