EU clears Deutsche Post US$6.48b takeover of Exel
BRUSSELS, Belgium: EU regulators on Thursday cleared German mail and package delivery firm Deutsche Post to buy British-based Exel PLC for euro5.5 billion ($6.48 billion), making it the world’s largest global delivery firm.
The European Commission said the takeover would see Deutsche Post significantly increase its market share for air freight forwarding in Finland, Hungary and Sweden.
But it said its investigation found competition would not be damaged because customers tend to have strong bargaining power and often operate a multiple supplier policy.
It cited strong competition from companies such as UPS Inc., TNT NV and Kuehne + Nagel, offering a similar range of services.
“After the transaction, customers will therefore be able to find companies offering alternative services at competitive prices,” it said.
The deal is the largest international acquisition for Deutsche Post and is expected to create the world’s largest logistics business with a combined work force of around 500,000 people.
Deutsche Post, Europe’s biggest postal service provider, said the deal would combine that with Exel’s strong position in Britain and United States.
The company also wants to reduce its dependence on its mail operation in Germany, where it will lose its monopoly in two years. - AP