UPS says reports linking its expansion plans to competitors’ merger are “misinformed”
UPS says its plans to invest $1 billion in its European business are in line with the strategy that it outlined back in mid-2014. UPS has informed Post&Parcel that its plans to invest $1 billion in its European business are in line with the strategy that it outlined back in mid-2014, and have not been formulated in response to the recent news that FedEx is to buy TNT Express for $4.8 billion.
In reports published by German magazine Wirtschaftswoche on Sunday and many other news outlets today including Reuters, Frank Sportolari, the Managing Director of UPS Germany, was quoted as saying: “We will strongly expand our network in Germany and the rest of Europe.”
Sportolari reportedly added that the investment would be used to increase the number of parcel shops and sorting centres.
So far, so uncontroversial. But the article published by Reuters went on to say that the FedEx/TNT deal was “stepping up the challenge to rivals UPS and Deutsche Post”, and added: “Sportolari said UPS ‘has lost time’ after its own attempt in 2013 to take over TNT was blocked by European regulators”.
Most of the other news stories also appeared to be drawing a link between the UPS expansion plans and the FedEx/TNT deal.
However, UPS Chief Financial Officer Kurt Kuehn actually announced the European $1 billion expansion plans back in July 2014.
A UPS spokesperson told Post&Parcel this afternoon: “We do not comment on competitor acquisitions and nor will we speculate on the outcome of the regulatory reviews that would precede them. But it is worth pointing out that our plans for $1 billion worth of investments in Europe over the next four to five years were already shared last year.
” We are running 60 expansion projects, see a European market opportunity and are executing on our plans which are realizing growth and margin expansion.
“We have been discussing our investments in European infrastructure and growth since July 2014. Reports suggesting that these investments are new or a reaction to recent market conditions are simply misinformed.”
