DHL merger with Danzas illegal

The merger between DHL, the international courier company with the Deutche Post Euro Express and Danzas will not be allowed in Zambia until the two firms seek authorisation from the Zambia Competition Commission (ZCC).

ZCC chairman George Lipimile said in an interview yesterday, that as far as the commission was concerned the merger was not recognised locally and that it would be illegal in Zambia.

Mr Lipimile said they had since written to DHL notifying them of the stand that the ZCC had taken regarding the merger.

DHL’s merger with Deutsche Post Euro Express and Danzas under the group-wide value enhancement programme called STAR has been announced following the approval by the European Commission (EC) last week.

In Zambia, the integration means that DHL and Walford Meadows which fell under Danzas would operate as one entity.

But Mr Lipimile wondered how the companies could go ahead with the exercise without seeking the legal backing and authorisation of ZCC for their local operations.

“We are not aware of their merger and as a result they cannot be allowed to operate under the new name locally. We have since written to them to notify them of our stand as ZCC.

“It is important that companies follow laid down procedures and regulations of countries in which they operate,” he said.

The merger is expected to raise the group’s net profits by 3 billion euros and DHL would carry the brand for express and logistics.