Deutsche Post delivers takeover proposal to British rival Exel
Deutsche Post has approached Exel, its British global supply chain rival, about a possible takeover that analysts say could cost more than €5bn ($6.5bn).
‘Discussions are at a preliminary stage and there can be no certainty as to their outcome,’ Deutsche Post said in a statement. Neither it nor Exel gave further details.
The news sent shares in Exel soaring by as much as 17%, valuing it at GBP3.45bn ($6.5bn), while Deutsche Post shares fell € 0.60 to €19.84 amid concerns it may be overpaying.
A takeover of Exel would leave Europe with just two big league independent logistics operators, Kuehne + Nagel and Panalpina.
Swiss company Panalpina announced last week that it was to float up to 56% of its share capital in an initial public offering estimated to raise €500m.
Deutsche Post’s takeover approach comes at a time when the mail giant is preparing for the ending in 2007 of its monopoly for letter deliveries in Germany.
Earlier this year, Deutsche Post bought the shipping operations of department store KarstadtQuelle. In 2003 it acquired Airborne Express for $1.05bn and merged it with DHL.
In June, Deutsche Post chief executive Klaus Zumwinkel said his company would not consider larger acquisitions but was interested in smaller takeovers in Asia and America. He has obviously changed his mind on the matter.
The acquisition of Exel would provide Deutsche Post with an expanding logistics company operating in 135 countries. The company could more easily help to follow manufacturers, which increasingly shift production to Asia and Eastern Europe.
Exel generates about a third of its revenue from activities in the British Isles, 30% in North and South America and 16% in Asia.
The remaining 21% comes from Europe, the Middle East and Africa. Turnover is GBP6.3bn.
