The Swiss logistics group Kuehne+Nagel has announced that it has launched a long-term strategic partnership with Amazon consisting of a wide-ranging collaboration that, by leveraging on an already consolidated relationship, aims to support future business opportunities and to further enhance the services offered to Amazon and its companies.

The collaboration involves Amazon Web Services, the subsidiary Amazon which provides cloud computing services on a company of the same name platform on demand, and covers the entire life cycle infrastructure: from the construction and installation of the equipment up to continuous maintenance, upgrades and expansion projects.

The agreement also includes a call option on shares already in Kuehne+Nagel circulation, adjustable in cash or - optionally of Amazon - in stocks. The option matures only on the basis of objectives and the provision of services over a period of up to seven years. In support of the agreement, Kuehne+Nagel has a third-party financial institution to carry out hedging on the company's shares, evidently for mitigate the market risk arising from the option by reducing exposure to stock fluctuations.

By exercising the option, therefore, Amazon could become shareholder of Kuehne+Nagel through a form of remuneration for The US e-commerce group linked to success of the collaboration, provided that Amazon does not opt, as envisaged agreement, for a cash payment. The option seems aimed at disincentivize Amazon from replacing Kuehne+Nagel with others logistics operators and, at the same time, to encourage The latter to invest to meet the needs of the group American. But also to ensure Amazon's growth in logistical capabilities through a participation in in the Swiss company.

However, Kuehne+Nagel did not specify, among others Information needed to assess the economic weight of the transaction, the number of shares covered by the call option, and to hypothesize whether the call should be interpreted as a component of a multi-year trade agreement, or as a possible gateway of Amazon into the group's capital Switzerland, or even as an incentive for Kuehne+Nagel to achieve the objectives agreed with the US group or, finally, as a long-term strategic alignment between the logistics provider and its important customer.