Deutsche Post receives clearance from the European Commission for its proposed acquisition of Exel
The Board of Deutsche Post AG (“Deutsche Post”) announces that the European Commission today gave unconditional clearance to the proposed acquisition of Exel plc by Deutsche Post under the EC Merger Regulation. Completion of the Offer remains subject to the satisfaction or, if permitted, waiver of the remaining conditions to the Offer set out in the Scheme Document, including, inter alia, the sanction of the Scheme by the Court and the reduction of capital. The hearing of the petition to the Court to sanction the Scheme and to confirm the reduction of capital is expected to take place on 9 December 2005 and 12 December 2005 respectively. It is expected that the last day for dealings in Exel Shares will be 9 December 2005 and that the Scheme will become effective on 13 December 2005.
END Merrill Lynch International (“Merrill Lynch”) and UBS Investment Bank are acting for Exel in connection with the Offer and no one else and will not be responsible to anyone other than Exel for providing the protections afforded to clients of Merrill Lynch or UBS Investment Bank or for providing advice in relation to the Offer or any other matters referred to in this announcement. JPMorgan Cazenove is acting as joint corporate broker to Exel in connection with the Offer and no one else and will not be responsible to anyone other than Exel for providing the protections afforded to clients of JPMorgan Cazenove or for providing advice in relation to the Offer or any other matters referred to in this announcement. Morgan Stanley & Co. Limited (“Morgan Stanley”) is acting for Deutsche Post in connection with the Offer and no one else and will not be responsible to anyone other than Deutsche Post for providing the protections afforded to clients of Morgan Stanley or for providing advice in relation to the Offer or any other matters referred to in this announcement.
IP/05/1472 EC Press Release
Brussels, 24th November 2005
Mergers: Commission clears the acquisition of Exel by Deutsche Post
The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the British logistics and freight forwarding company Exel by Deutsche Post, which owns DHL and Danzas. The Commission considers that although Deutsche Post will increase its presence on the markets where Exel is active, other companies will be able to compete effectively with Deutsche Post. The Commission has therefore concluded that the proposed transaction will not significantly impede effective competition in the European Economic Area (EEA) or any part of it.
Both Exel and Deutsche Post, through its subsidiaries DHL and Danzas, are active in the contract logistics and freight forwarding markets in Europe. Deutsche Post is also active in related markets, such as standard and express parcel and document delivery.
The Commission found that the transaction will result in a significant increase of market share in air freight forwarding in Finland, Hungary and Sweden. However, the Commission’s market investigation showed that customers tend to have strong bargaining power and often operate a multiple supplier policy. The Commission also found that Deutsche Post will still face strong competition from other companies, such as UPS, TNT 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. In addition, the Commission’s market investigation indicated that the air freight forwarding market may be European in scope, and on such a broader market the combined entity’s market share would be lower than in Finland, Hungary or Sweden.
