Deutsche Post given approval to take over KarstadtQuelle logistics division

The antitrust authorities in Germany have given approval for German postal services provider Deutsche Post to take over the logistics division of troubled German retail and mail order group KarstadtQuelle. The authorities determined that Deutsche Post would not have a market dominating position in the market for transportation of large and individually packaged goods and did not place any conditions on the acquisition. The takeover is to take place on July 1.

DHL, the parcel subsidiary of Deutsche Post, took over logistics activities for KarstadtQuelle’s department stores in April. The total price for the takeover of the division, which Deutsche Post estimates to have annual turnover of 500m euros, is 200m euros. Deutsche Post says that all 3,700 employees of the KarstadtQuelle division will keep their jobs. As part of its recovery programme, KarstadtQuelle is also looking to sell the parcel centres of its retail divisions Neckermann and Quelle. Deutsche Post has confirmed its interest in these and is holding talks with KarstadtQuelle.

Abstracted from Handelsblatt

Deutsche Post wins regulatory okay to take over logistics centres
Dpa English 06-16-2005

Bonn, Germany_(dpa) _ Deutsche Post won regulatory clearance Thursday to take over logistics centres owned by ailing German retail and mail order group KarstadtQuelle in a transaction worth more than 200 million euros (240 million dollars).

The Bonn-based German Cartel Office said it was attaching no provisoes to its approval of the deal, where Post subsidiary DHL will take over sites that handle both bulk and parcel shipments for the retailer’s Quelle and Neckermann units.

The Office said the consent did not extend to KarstadtQuelle’s order fulfilment centres, where packages are made up for mail order customers. A spokeswoman said that had not been part of the application.

The two companies announced the sale of the logistics centres at the start of the year, effective July 1, with DHL winning a 10-year contract worth 500 million euros annually to provide transport services. Karstadt is concentrating on its core retail businesses.

DHL has been transporting goods from warehouses to Karstadt department stores since April 1. Deutsche Post has been expanding from a mail carrier into a general logistics group. dpa ba jbp sc