Deutsche Post abandons Austrian Post acquisition plans
German postal company Deutsche Post AG has fully given up all future plans to buy Austrian competitor Oesterreichische Post AG, Deutsche Post CEO Klaus Zumwinkel said on April 17, 2005.
The decision was the result of differences in political developments, Zumwinkel added.
Austria had initially planned to sell Austrian Post to a strategic partner through privatisation. Last week finance minister Karl-Heinz Grasser said it had been decided to sell the state’s minority holding in Post over the stock exchange in the spring of 2006.
Currently Deutsche Post faces troubles with its U.S. express mail service business, which is forecast to incur an 800 mln euro ($1.031 bln) loss for 2004 and 2005. The Germans have also expressed interest in Danish and Belgian competitors.
Deutsche Post, which generated 300 mln euro ($386.8 mln) sales in Austria for 2004, plans to strengthen its local position in the future.
With a workforce of 400,000, the company reported 1.6 bln euro ($2.063 bln) net profit on 43.2 bln euro ($55.693 bln) sales for 2004. Its international business is expected to account for 50 pct of the overall revenue in 2005. Deutsche Post has units in 220 countries.
