TPG sees expansion in European domestic mail networks in H1

Ad Scheepbouwer, chief executive of TNT Post Group NV,
said he expects to announce in the first half of this year further joint
ventures or acquisitions to expand the company’s domestic mail networks
throughout Europe.
The focus is on expanding the local mail network in the UK, chief financial
officer Peter Bakker said at a news conference on annual results, adding
that TPG is also looking for possibilities in France, Spain and Germany. The
company is also among bidders for a 25 pct stake in the Greek post office,
Scheepbouwer said.
TPG currently operates partial local mail networks in Belgium, Germany,
Italy, Austria, Slovakia and the Czech Republic. These operations accounted
for 186 mln eur in group sales last year.
As TPG awaits the opening up of European direct mail markets to competition,
the company is building up its local services for delivering unaddressed
mail, Bakker said.
The mail operations are also developing database management services and may
make acquisitions in this area to boost revenues until the full mail market
is liberalized, Scheepbouwer said.
The CEO said that the European Union achieved little in advancing postal
liberalization at the minsters meeting in December. However, he expressed
confidence that the EU will address a new proposal at its council meeting in
June and possibly take a decision for approval in the second half of 2001.
Bakker said that a couple of companies have already expressed interest in
acquiring TNT International’s mail business in the Netherlands. TPG hopes to
complete the sale in a couple months.
Assuming the EU approves the venture this week, the CEO expects that TPG’s
international mail joint venture with the Singapore and British post offices
will be operational in May or June. The venture is expected to report annual
sales of 450 mln eur, and contribute to profit this year already.
cjs/tw
AFX NEWS, 12th March 2001