Germany to sell remainder of Deutsche Post
The German government plans legislation to free the sale of its remaining stake in Deutsche Post World Net, the recently-privatized global mail, express and logistics company.
The German cabinet is set to approve changes in existing legislation which requires the government to hold a majority stake of 50% plus one share to ensure Deutsche Post provides a full service.
Following Deutsche Post’s initial public offering in November 2000, the government holds a direct stake of 50% plus 26 shares and an indirect stake of 19% via a state-owned development agency.
United Parcel Service and FedEx unsuccessfully lobbied the U.S. Department of Transportation to withdraw a freight forwarding license from Deutsche Post’s DHL subsidiary on the grounds that it was controlled by a foreign government.
The change in legislation will mean that Deutsche Post remains legally bound to provide a full nationwide mail delivery service, but the government no longer has to control the company through a majority shareholding.
The legislative changes likely will be finalized by the end of the year, allowing the government to sell further tranches of Deutsche Post, which has transformed itself into a global express and logistics operator after a $5 billion spending spree that netted top freight forwarders, transport companies, parcel delivery firms, and express carriers.
The government has not given any details about the size or timing of the sale.
Journal of Commerce JOC
