TPG, British Post Office and Singapore Post in ground breaking one billion NLG business mail joint venture
Today at 10.30am the CEOs of TNT Post Group N.V. (TPG), the British Post Office and Singapore Post will sign heads of agreement to start establishing a global joint venture in cross border mail. The alliance, the first of its type, will create the world’s largest business mailing partnership, combining the expertise, systems, networks and products of three of the world’s most important international mailing companies. From the start, the new alliance will have a combined annual turnover of close to EUR 450 million (one billion NLG) and will service 200 countries world-wide. The new company will have its headquarters in Belgium. The three parties have also agreed to explore the development of domestic networks.
Customers throughout Europe, the Americas and the Asia Pacific region will benefit from the synergies of the joint venture, which include greater operational flexibility, through access to a combined world-wide alternative network, the development of specialist products and services and the ability to offer a range of pricing options.
TPG will have the major 51 per cent stake holding in the new alliance, with the British Post Office and Singapore Post each taking a 24.5 per cent stake.
Commenting on the agreement, TPG’s CEO Ad Scheepbouwer, said: “This alliance represents a significant milestone in the history of the world’s postal market. International mailers world-wide will now have even more choice, more options and a more sophisticated system for sending their mail. This is a strategic alliance which will bring benefits to many millions of companies around the globe.”
For the British Post Office the alliance will be an important part of its strategy to maintain its position as one of the world’s leading mailing companies. Commenting on their involvement CEO, John Roberts, said: “This innovative venture heralds a new era in the global mail market by creating the world’s largest business mailing partnership. It links the Post Office’s established international mailing expertise and experience with the world-wide delivery ability and access of our partners, and that’s good news for all our customers.”
All three partners have global mailing expertise, with TPG and the British Post Office providing the alliance with well developed services throughout Europe, the Asia Pacific region and the Americas. Singapore Post, with its state-of-the-art operation and systems and established business relationships throughout the Asia Pacific region, will help to take the alliance into a new dimension.
Singapore Post’s CEO, William Tan, commented on the venture, saying: “Singapore is at the heart of the Asia Pacific region. Joining forces with TPG and the British Post Office will strengthen our European and American coverage, offering opportunities and advantages to all our customers.”
Speaking on behalf of all the partners Mr Scheepbouwer added, “The alliance demonstrates the commitment of three well known and progressive postal companies to provide customers with an alternative, integrated one-stop solution. Direct marketers, publishers, e-Commerce merchants, corporate mailers, financial institutions and distance sellers will all benefit from the springboard to Europe, Asia Pacific and the Americas.
“We believe that the alliance will be fantastic news for all customers who face increasing cost pressures and who need more flexible, reliable value for money services.”
The joint venture is subject to due diligence, relevant approvals and consultation proceedings.