TNT announces interest to explore strategic partnership with Royal Mail
The publication of the Hooper Commission report forms the background of TNT’s renewed expression of interest.
The publication of the Hooper Commission report forms the background of TNT’s renewed expression of interest.
Peter Bakker, CEO of TNT, said: ‘’Royal Mail and TNT have explored partnership opportunities in the past. The views of the Hooper Commission provide a clear framework for the UK postal sector going forward. Assuming the UK government implements these recommendations, I think that exploring a strategic partnership with Royal Mail makes a lot of sense for both our companies.’’
The objective of the partnership would be to help develop Royal Mail into a modern, best-in-class postal operator that combines excellent mail service with solid and sustainable financial performance as part of a broader global network. The scope of a potential partnership would exclude Post Office retail outlets given its public service network function.
TNT’s proposal to Her Majesty’s Government is to enter into discussions on a strategic partnership with Royal Mail with the objective to reach agreement on key terms and conditions for a substantial minority shareholding. TNT’s proposal assumes the implementation of the key recommendations of the Hooper Commission that are instrumental to a sustainable future for Royal Mail.
TNT’s track record in Mail and Express
TNT’s mail division generates revenues exceeding €4.2 billion, employs 85,000 people and delivers more than 7.5 billion addressed items. TNT Post is the universal service provider in the Netherlands, achieving a consistently high next day delivery quality. Over the last five years, TNT has successfully developed a significant presence in postal markets outside the Netherlands.
TNT is the number one operator in both national and intra-European express services and is quickly expanding its leadership position in emerging markets like India, Brazil and China. TNT Express serves over 200 countries, with revenues exceeding €6.5 billion and employing more than 75,000 people.
In the UK, TNT Post handles more than 2.3 billion addressed mail items per year and employs close to 1,000 people. TNT Express employs over 11,000 people and operates 3,500 vehicles out of 70 strategic locations. The combined revenues of TNT in the UK are around €1.6 billion. TNT remains committed to growing its mail and express businesses in the UK.
