The Germans are planning to make further inroads in the UK parcel delivery market after Deutsche Post DHL Group revealed it has reached a £242.7m deal to buy troubled one of the largest companies in the sector, UK Mail Group.
In a statement issued today (28 September), Deutsche Post DHL said that the acquisition will bring together its own expertise in e-commerce and parcel delivery with UK Mail’s customer base and network.
It is claimed the move will also strengthen the European market position of DHL Parcel, by adding a commercial and operational presence, including pick-up and delivery capabilities in the UK.
Deutsche Post DHL Group board member Juergen Gerdes said: “The ongoing expansion of our parcel network in Europe is driven by increasing demand within our e-commerce customer base for cross-border deliveries. Deutsche Post DHL Group, as the leader in the German parcel market, has already established a strong position in a number of European countries.
“UK Mail is a well-run business and an established provider of quality delivery services in the UK and offers a complementary fit with our integrated offering. With this acquisition, we will further extend our network and have a strong foothold in Europe’s three largest e-commerce markets, the UK, Germany and France, which account for over 60% of online retail in the continent.”
The deal is still conditional on the approval of UK Mail shareholders, and it will need merger control clearance from the European Commission.
The move follows a torrid period for UK Mail, which has suffered teething problems from switching over to its new automated delivery hub in Coventry, and also a change in senior management, with Guy Buswell stepped down as CEO in November.
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