TPG, German Hermes form mail alliance

Dutch postal, express and logistics company TPG NV has signed an agreement to establish a mail delivery joint venture with German distribution group Hermes. TPG would hold 71 percent and Hermes 29 percent of the joint venture, which would be named EP Europost AG & Co KG. According to Die Welt, “things are about to change in Germany’s letter-delivery market. German private postal group Hermes Versand (part of Otto Versand) is planning to create a joint-venture this year with EP Europost AG. Europost is the German subsidiary of TPG Post Groep of Holland. Hermes is seen as Deutsche Post’s main rival, largely because of its financial strength and nationwide network. Alex Eglseer, simultaneously head of TPG’s German operations and the Europost office in Hanover, is also convinced that a partnership will be formed in 2001. The Dutch company, which has built up a network in Germany of business-to-consumer postal services, would be the majority partner in the joint-venture.”