UK Royal Mail seeks alliance with American parcel giant
Two of the world’s biggest postal groups, Fedex Corporation and UPS, are in advanced negotiations to set up a groundbreaking European strategic alliance with Royal Mail. Allan Leighton, chairman of Royal Mail, is still deciding which of the two potential American-owned partners to pick but it is thought he is close to creating a new company that could transform the financial prospects of the British mail group. Leighton did not reveal the talks with the two US postal giants — Fedex, which is capitalised at USD33 billion (GBP17.5 billion), and UPS, worth USD52 billion. He wants the European operations of Fedex or UPS to team up with Royal Mail’s General Logistics Systems. GLS runs a pan-European parcels business and is Royal Mail’s most profitable operation.
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