Eesti Post must give up plan to purchase Express Post

Estonian state postal company Eesti Post said it has cancelled negotiations with press delivery service Eesti Post that is co-owned by Ekspress Grupp and Eesti Meedia.
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Eesti Päevaleht writes that according to a stock exchange statemetn made by Ekspress Grupp, the negotiations were cancelled without coming to an agreement since neither party agreed on the terms of the agreement.

In March Eesti Post offered Ekspress Grupp to sell its half-stake in Express Post. Ekspress Grupp decided to involve in the negotiations the other half-owner Eesti Meedia that publishes, among others, Postimees.

Revenues of Express Post were EEK 72 million (USD 7.22 million) last year.

In February the Estonian Competition Authority said it will not investigate claims that Eesti Post held illegal negotiations with a private postal company Express Post.

An executive of Eesti Post and Hans H. Luik, half owner of Express Post, had reportedly discussed how to divide the market of mailing services in the country between them. Holding such negotiations on market division is illegal.

Both Ahti Kallaste, board member of Estonian Post, and Luik admitted that they have been discussing ways of dividing the market.

However, Luik later told Äripäev that nothing specific was discussed.

Express Post mainly distributes perodicals such as newspapers and provides courier services. Half of the company belongs to Eesti Meedia and half is owned by Ekspress Grupp that is listed on the Tallinn Stock Exchange.