Deutsche Post, the German postal group, yesterday stepped up its rivalry with the Royal Mail in the UK’s rapidly deregulating parcels sector by taking control of Securicor Omega in a deal worth pounds 167m.
The German postal service bought the remaining 50% stake it did not own in the post and logistics business from Securicor. Deutsche Post refused to say whether it was also interested in mail assets coming up for sale at Hays.
Read MoreDeutsche Post World Wide AG must negotiate a tricky political and regulatory environment if it hopes to secure approval for its proposed $1.05 billion acquisition of Airborne Inc. The deal raises a host of political issues, including state-sponsored monopolies, national security and free trade. The German government owns a majority stake in Deutsche Post, which has led to charges that the postal giant is using monopoly profits from German mail delivery to subsidize U.S. operations. Also in question: whether Deutsche Post and its U.S. unit, DHL Worldwide Express, can structure the deal to avoid a U.S. ban on foreigners controlling domestic airlines, including cargo carriers.
Read MoreUnited Parcel Service accused Deutsche Post of further violating foreign ownership laws after the German postal operator struck a deal to buy Seattle-based Airborne’s ground operations for $1.05bn. The complaint, filed with the Department of Transportation, calls for further widening a federal examination into whether Deutsche Post is flouting laws forbidding foreign companies from owning more than 25 per cent of US airlines. UPS claims Deutsche Post is in direct control of Chicago-based DHL Airways, a cargo carrier, via its subsidiary, DHL Worldwide.
Read MoreWhen Deutsche Post said yesterday it would buy the ground operations of Airborne, the third-largest US air express delivery company, for USD1.05bn, the German postal operator closed a hole in its ability to deliver ground packages in the US and caught up with United Parcel Service and FedEx, two of its fiercest rivals. The move marked the latest triumph for Klaus Zumwinkel, Deutsche Post’s chief executive. Airborne, Mr Zumwinkel said, would be another step towards transforming the once-creaky state monopoly into the world’s top logistics group. But observers worry that Deutsche Post may stretch itself thin as it shops around.
Read MoreDeutsche Post said on Tuesday it was confident of winning back hundreds of millions of euros it was forced to repay the government by an EU ruling on illegal state aid but said a decision would not come until 2005.
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