Kuehne+Nagel rises after long-term Amazon collaboration deal

Shares in Kuehne+Nagel KNIN.S are up 5.7%, after the Swiss logistics group announced a long-term strategic collaboration with Amazon.

Kuehne+Nagel says the deal includes Amazon Web Services, covering cloud infrastructure logistics from construction and equipment deployment to maintenance, upgrades and expansion projects.

For Kuehne+Nagel, Amazon generates revenue in the high triple-digit million dollars area, and could become several billions thanks to the deal.

Brokerage Vontobel says the agreement highlights Kuehne+Nagel's "strong and growing position" in profitable data centre infrastructure logistics. It says the expanded relationship is likely to further accelerate growth in Kuehne+Nagel's data centre business.

The collaboration is supported by a call option on existing Kuehne+Nagel shares, with vesting based on commercial milestones and services over up to seven years.

The shares are on track for their best day since February 2023, when they closed 7.8% higher. Up to the previous session's close, shares were up 26% year to date.