DHL eCommerce acquires a 25% stake in CTT Expresso Portugal
DHL eCommerce and CTT Expresso have entered into a landmark strategic partnership with the aim of making the most of the growth potential in the e-commerce and parcel markets in Spain and Portugal, which together form the fourth largest market in Europe.
The collaboration is expected to create the most comprehensive pick-up and delivery network in Spain and Portugal. To this end, the companies will establish specialized joint ventures. In Portugal, CTT Espresso acquires the DHL eCommerce business and will process and deliver DHL eCommerce’s parcel volumes in the future. In Spain, each of the partners will focus on one area: DHL eCommerce will focus on the B2B business in the future and CTT Express, the Spanish unit of CTT Expresso, on the B2C business. This creates a highly efficient network for parcel processing and last-mile delivery that improves the customer experience throughout the Iberian Peninsula.
“Today, we have laid the foundation for unique market access and Europe-wide expansion potential for our customers. E-commerce in the Iberian Peninsula is expected to grow significantly in the coming years. Our investments and collaboration create a powerful network that improves service quality and reliability in both the B2B and B2C segments, with the goal of generating €1 billion in revenue from the joint business. By leveraging the individual strengths of CTT and DHL eCommerce, this partnership makes us the first choice for growth-oriented e-commerce companies and merchants,” said Pablo Ciano, CEO DHL eCommerce.
“CTT and DHL eCommerce share common values, as both are companies with a long tradition in the parcel and logistics sector, where quality and reliability are always a priority. By joining forces in the Iberian Peninsula, we create real added value for our customers and become the partner that the booming e-commerce trade needs. In addition, by working with DHL eCommerce in Spain and integrating DHL eCommerce in Portugal, CTT Expresso will accelerate its growth and optimize its market reach. This strengthens our position as the fastest growing provider of e-commerce logistics in the Iberian Peninsula,” explains João Bento, CEO of CTT – Correios de Portugal.
Collaborate to improve customer value and service quality
With a network of 20,000 service points (PUDOs), 22 hubs and 257 depots in Spain and Portugal, and more than 1,000 parcel stations under the Locky brand, CTT Expresso is one of the leading parcel delivery companies in Portugal and the fastest growing in Spain. DHL eCommerce has a particularly strong presence in Spain, with over 3,000 service points, seven hubs and 73 depots. The integration of the two networks will increase convenience for customers, as they will be able to drop off and receive parcels at parcel stations or service points of both partners in the future, for example. There are also plans to expand the joint out-of-home network over the next few years by building 10,000 new parcel stations. In addition, by leveraging DHL eCommerce’s European network and expertise in cross-border parcel shipping, the collaboration will provide optimal solutions not only for domestic but also for international e-commerce companies.
The new partnership will operate under the independent brand names “CTT Express, a partnership with DHL” in the B2C segment and “DHL, a partnership with CTT Express” in the B2B segment.
The agreement and the partnership described are subject to regulatory approvals. The transaction will only be carried out after receipt of clearance in accordance with the relevant merger control requirements.
