SATS Ltd. has agreed to buy Worldwide Flight Services (WFS) for €1.2 billion ($1.1 billion) in cash in a deal that will transform Singapore’s catering and gateway services company into the world’s biggest handler of airborne freight.

The Singapore-listed company will acquire WFS from a unit of Cerberus Capital Management in a transaction that gives the Paris-based air cargo handler an enterprise value of €2.3 billion. The deal is expected to be completed by March 2023.

“This is a transformational opportunity for SATS and our proposed acquisition of WFS will create a global leader that can become the go-to provider of mission critical aviation services,” Kerry Mok, president and CEO of SATS, said in a statement. “From our hub in Singapore and in our newly combined markets, SATS and WFS will be at the heart of global trade flows, operating in the world’s busiest airports and supporting the biggest companies.”

Read Related Also: Bloodletting And Central Bank Pseudoscience

Under the deal, WFS will become a wholly-owned subsidiary of SATS and continue to be led by CEO Craig Smyth. WFS operates across major airports in Los Angeles, Chicago, Miami, Frankfurt and Paris, while SATS has operations in key hubs across Beijing, Hong Kong, Singapore and Taipei. Their combined network across strategic hubs in Asia, Europe and the U.S. handles more than 50% of global air cargo volumes, SATS said.

To fund the acquisition SATS said it has arranged a bridging loan equivalent to as much as €1.2 billion euros. At the same time, it plans to raise up to S$1.7 billion ($1.2 billion) by selling SATS shares to existing and new strategic investors, proceeds from which will be used to repay the loan.

SATS, which counts Singapore’s state-linked investment firm Temasek as its biggest shareholder with a 39.7% stake, provides catering and comprehensive gateway services to airlines, cruise lines, freight forwarders, postal services and e-commerce companies across 14 countries in the Asia Pacific, Middle East and the U.K.