Australia Post cleared for $408m StarTrack buyout
Australia Post has been given the go ahead to buy out its partner Qantas from their 50-50 express parcels joint venture StarTrack. The Australian Competition and Consumer Commission confirmed today that it will not oppose the deal, which also involves the Post selling its 50% stake in the Australian Air Express business to its airline partner.
Qantas is expecting to receive A$408m ($423m USD) plus a $5m completion adjustment from Australia Post from the deal, which should be completed by the end of this year.
Australia Post announced last month it was intending to take full ownership of the door-to-door express parcels and freight company, which it launched six months ago with Qantas following a restructuring of their Australian Air Express and Star Track Express businesses.
The national postal service said today that taking on the 50% stake in StarTrack from Qantas was part of its ongoing A$2bn investment programme in its national logistics and retail network, as it focusses on growth in parcels and ecommerce shipping.
“Strategic”
“StarTrack is a key strategic investment, offering significant express freight capabilities that complements our international and domestic parcels business,” said Australian Post CEO Ahmed Fahour.
“Together, Australia Post and StarTrack will offer a broad range of products to consumers, small-and-medium enterprises and larger businesses.”
Australia Post and Qantas launched their joint venture freight company Australian Air Express back in 1992, and acquired Star Track Express in 2003.
The companies decided in May 2011 to bring together the retail shipping divisions of Australian Air Express and Star Track Express, under the StarTrack brand which was launched a year later.
The StarTrack business has 57 branches and a fleet of about 3,000 vehicles, handling about 1m parcels each week.
Australian Post said today that it was divesting its 50% interest in Australian Air Express to Qantas because it was no longer considered a core investment.
