DHL stakes a claim in U.K. market with its latest acquisition

Germany’s Deutsche Post DHL picks up U.K. integrated mail and parcel operators as part of a European expansion drive and to accelerate their growth in the UK.

Global mail and logistics group Deutsche Post DHL Group announced Wednesday it would acquire UK Mail Group PLC for £242.7mn (US$315.7mn or €281.6mn) in an effort to strengthen its European cross-border parcel network to meet growing e-commerce demands.

"Through this acquisition we will further expand our network, and will occupy a strong position in three major markets of e-commerce in Europe - in the UK, Germany and France - which account for over 60% of online trade on the continent," - said Jürgen Gerdes, a board member of Deutsche Post.

Positioned to compete in the U.K.
Deutsche Post DHL, under “Strategy 2020” , has had its sights on gaining stronger positioning in the U.K. market, in addition to increasing shares in the German and French markets.

UK Mail’s national network of more than 50 sites and 2,400 vehicles will help do so by adding more pickup and delivery capabilities to Deutsche Post DHL, positioning it to more competitively challenge Royal Mail within the U.K. and in the lucrative cross border parcel business.

The acquisition also bodes well for UK Mail. Peter Kane, Chairman of UK Mail, said, “the Board believes that UK Mail will benefit significantly from becoming part of Deutsche Post DHL, and will be better positioned to continue to develop our parcels and mail businesses with the benefit of Deutsche Post DHL’s greater financial and operational resources.”

Tags: News, Logistics, Acquistions

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