Hermes, TNT to Compete with Deutsche Post?

“German distribution group Hermes is close to sealing a co-operation deal with TNT Post Group to step up competition with Deutsche Post AG, Hermes said on Tuesday. Hermes, the delivery arm of mail-order giant Otto Versand, and TPG were finalising negotiations under which Hermes would buy a minority stake in TPG-owned German postal firm EP Europost, a spokeswoman told Reuters in response to an enquiry. The co-operation would link the Hermes courier distribution network across Germany to the Dutch logistics group’s sales and marketing expertise, creating a potentially strong rival to DPAG in the liberalised German mailings and catalogue distribution market.” The article states: “German business weekly WirtschaftsWoche reported last week that Hermes would announce on Tuesday that its Hermes Boten Service (HBS) unit was buying a minority holding in Hanover-based EP Europost. This would give TPG access to a network of 65 depots, 500 courier centres and nearly 10,000 couriers in Germany while Hermes would benefit from EP Europost’s customer base, the magazine said. Europost specialises in delivering small and light items such as mailings, while HBS mostly transports heavier mail-order catalogues but also letters over 200g, mailings and small parcels. HBS markets its services through PrimeMail, a joint venture with Swiss Post International which in turn uses TPG for international mail activities.”