HDN-DHL sale approved by Office of Fair Trading

Home Delivery Network’s acquisition of DHL Express’ UK domestic parcel business has been rubber-stamped by the British Office of Fair Trading (OFT). Home Delivery Network (HDN) originally announced the deal in January.

The Office of Fair Trading’s website said the acquisition had been “cleared” with an official announcement to be published “shortly”.

The combined businesses will have annual sales of more than £600m and will deliver more than 180m parcels a year. HDN has already promised “a sizeable investment” to “ensure that the businesses will achieve their long term prospects”. The company previously stated that DHL Domestic will continue to trade under the DHL Domestic name until the two businesses are fully integrated.

The transaction does not include DHL’s UK International Time Definite and Same Day express services. DHL’s other UK businesses DHL Freight, DHL Global Forwarding, DHL Supply Chain, DHL Global Mail and Williams Lea are unaffected by this move.

Speaking at the time of the announcement, Brian Gaunt, HDN chief executive, said: “This transaction is great news for customers of both HDN and DHL Domestic. The growth of e-commerce has transformed our marketplace and with it the demands of our customers. Combining these businesses will enable us to offer our clients a wider variety of propositions and a more efficient service. However our immediate focus will be to maintain the exceptionally high standards of service that our customers have come to expect from both businesses.”

The sale follows DHL Express’ exit from the US market in 2009, as it looks to focus on international services. The company has also left the Irish market, and is reportedly in negotiations to sell its French business to Caravelle.

The acquisition creates a viable rival to Royal Mail in the UK market.