Deutsche Post to Invest EU1.5 Billion in China

Deutsche Post AG, Europe’s largest postal service, plans to invest more than 1.5 billion euros ($1.4 billion) in China within the next three years to become the country’s No. 1 logistics company, Der Spiegel said.

Deutsche Post’s DHL Worldwide Express Inc. unit holds 35 percent of the Chinese market, more than U.S. rivals United Parcel Service Inc. and FedEx Corp., the magazine said in a release of an article to appear in Monday’s issue, citing an internal paper.

The German company plans to expand its logistics and express- courier divisions DHL and Danzas and form joint ventures with Chinese partners to enter the postal market, Der Spiegel said.

Bonn-based Deutsche Post is moving into logistics to cut dependence on the mail business before its letter-delivery monopoly in Germany expires in 2007. The company plans to raise its stake in DHL this year to 70 percent from 51 percent.