Ecargo (ECG) has completed its acquisition of China export business Metcash Export Services from supermarket wholesaler Metcash.

The wholesaler, which supplies more than 10,000 independent retailers in Australia, still owns 15 per cent of Metcash Export Services, while ECG controls the remaining 85 per cent.

The Metcash’s China team will join eCargo group and Will Zhao, Metcash’s current Head of China Operations based in Shanghai will become CEO of ECG.

The acquisition, first announced in November last year, includes Metcash’s subsidiary which includes Metcash Asia Limited, a wholly-owned foreign enterprise in China.

ECG is also entering into individual agreements with Metcash covering supply, services and licencing to access Metcash’s extensive sourcing capability and private label development in Australia.

This acquisition turns the company into a fully integrated online retailer to offline distributor, according to ECG.

ECG said this acquisition allows the company to create a “one-stop offering” for businesses who want to capture the attention of China’s growing consumer market, taking their products to Chinese virtual and bricks and mortar shelves.

John Lau, executive chairman of ECG said, “The completion of this transaction with Metcash demonstrates that we are serious about becoming the leader of consumer products export into China and especially into its regional cities.

“Having the supply power of Metcash completes the missing piece of the puzzle for ECG where good products at a good price is complemented by good logistics and sales and marketing into the right channels.”

Jeff Adams, CEO at Metcash Group said, “We are looking forward to building a strong relationship with ECG and its management. We thank all our team members who are transitioning as part of this transaction and wish them well in the future.”

The combined businesses will offer ecommerce operations and content generation services; online incubation platform for small and emerging brands; B2C multi-platform, multi-brand ecommerce hub for established brands; B2B wholesale distributor in first – fourth tier cities with tailored market activation strategy; and leading Alibaba Tmall Stores of Jessica’s Suitcase and Metcash as well as key opinion leader endorsement on key products.

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