Airborne in talks with Deutsche Post
Airborne on Monday confirmed it was in talks with Deutsche Post on a deal that could be worth $1bn and see the German postal operator buy the the US’s third largest express delivery company’s ground operations for an undisclosed cash sum at a premium to the group’s current share price.
Airborne said that such a deal with DHL Worldwide Express, a subsidiary of Deutsche Post, would involve setting up an independent public company that would continue to be wholly owned by Airborne’s shareholders.
However the US group stressed that no agreement had been reached adding that there were no assurances that one would be. Any deal would also be subject to stockholder and regulatory approvals.
A move by DHL would be likely to provoke strong opposition from rivals FedEx and United Parcel Service, both of whom are looking to shore up their positions in this market which is coveted for its high margins.
UPS has long dominated this category with its fleet of brown trucks, while FedEx has occupied the air express shipping sector.
FedEx and UPS have already raised concerns over DHL’s complex ownership structure, claiming it might be in breach of laws prohibiting foreign control or ownership of any US airline.
Airborne shares close up 87 cents on Friday, or 5.5 per cent, at $16.69 in New York.
