German shipping company Penske is to buy logistics company Penke Logistics, the two companies announced on Thursday.
The deal is worth about €50m and will give the German logistics company a strong presence in the EU and a new business in the European food industry.
The transaction is subject to regulatory approval, which has yet to be granted.
The deal is expected to be completed in the first quarter of 2018.
Penske Logistic has operations in Germany, Austria, Austria-Hungary, Switzerland, and the Netherlands.
It operates two logistics centers in Hamburg, Hamburg-Stadthalle and Frankfurt.
In Germany, Penske Logistical also provides logistics for a number of large retailers, including Amazon.com and the UK’s Marks & Spencer.
The two companies also operate logistics in Italy, Germany, France, Spain, Portugal, and Sweden.
Penskis Logistics also offers the logistics services for a wide range of food and drink brands.
The company operates in the food, beverages, wholesale and wholesale services for more than 150 companies, including McDonalds, Burger King, PepsiCo, Nestle, McDonalds and Coca-Cola.
Shares of Penke fell more than 7% to €3.42 in Frankfurt on Thursday, while the shares of Penkes Logistics jumped 5% to a new record price of €2.71.