Commission clears Deutsche Post's sole control of Securicor distribution activities

The European Commission has granted clearance under the Merger Regulation to the acquisition by Deutsche Post AG (DPAG) of sole control of Securicor Omega Holdings Ltd, a mail, parcel, freight delivery and logistics company currently controlled by DPAG and Securicor Plc. The deal gives rise to only limited overlaps which do not trigger dominance concerns in either the UK or Ireland, which are the only two EU countries where both are active in these postal distribution activities.

Securicor Omega Holdings (SOH) was a subsidiary of Securicor until November 1998 when it became jointly controlled by Securicor and DPAG. It is active in the international and domestic express and standard mail and parcel delivery business in the United Kingdom and Ireland as well as in international and domestic express freight, freight forwarding and logistics. It should be noted that in Ireland SOH’s parcel activities are already carried out on behalf of DPAG.

Under the terms of an agreement notified to the Commission on May 15, DPAG will buy the entirety of Securicor’s stake in SOH therefore taking sole control of the company. Securicor will focus on security services, including the transport of cash, after the sale.

The transaction gives rise to only a few overlaps in most of the Irish and UK postal services concerned where the combined market share will remain below 10%. In the case of the UK international express delivery market, DPAG already has a high market share, but the increment brought about by SOH is less than one percent.

The Commission has concluded the change from joint to sole control is unlikely to have an appreciable effect on customers and that the merged entity will, in any case, face strong competitors with considerable financial and economic resources as well as a world-wide presence and independent infrastructure.

DPAG is a German public limited company which provides universal postal services in Germany under an exclusive licence and which is active, via a number of subsidiaries, in international and domestic express delivery, road-based parcel delivery, freight and logistics, value-added mail activities, financial services, and stationery retailing. The Federal Republic of Germany directly or indirectly holds about 69% of DPAG’s shares, the remainder being held by private investors.