City Link and Net Express Europe partnership expands its European presence
City Link has begun an awareness programme to increase its European reach.
Read MoreTag: Geodis
City Link and Net Express Europe partnership expands its European presence
In a bid to further expand its presence in Europe; leading express parcels delivery carrier City Link has begun an awareness programme to increase its European reach.
Net Express Europe (NEE) which City Link is a founding member, is entering a new era with service performance unrivalled and daily record volumes since inception nearly 10 years ago, the formation of 6-leading delivery partners enjoying levels of growth which are surpassing expectations.
City Link has announced it will be increasing the awareness of the network, by investing in the NEE brand to a number of trunk and C&D vehicles in its distinctive new livery.
Collectively, the NEE partners offer City Link customers an impressive range of services and destinations to 22 other European countries to create a dominant force in the European delivery marketplace.
France, for instance, is served by Geodis with 204 depots spanning the country, operating out of the main hub in Gennevilliers (near Paris) and two regional hubs in Montpellier and Lille, operating a fleet of over 4,500 vehicles.
Germany is served by GEL Express Logistik with a hub in Werl and 100 depots, whilst the Netherlands and Belgium are serviced by Schiphol Express, which is based in Amsterdam.
Ontime Logistics is the partner in Austria and Hungary, whilst Seur Internacional based in Barcelona serves Spain & Portugal. All of the other countries are serviced by the 16 specialist agents who work in partnership with the Net Express partners.
SNCF completes Geodis takeover
The EUR 600 million acquisition of freight logistics group Geodis by French rail operator SNCF has been completed with the delisting of Geodis shares from the Euronext Paris stock exchange. SNCF aims to create Europe’s fourth-largest transport and logistics group which will also be among the express market leaders in France.
SNCF, which already held 42.37 pct of Geodis’ share capital and 45.79 pct of voting rights prior to its offer, announced in early April it would offer EUR 135 per share to buy full control of Geodis. The offer, which ran through June and part of July, was supported by the Geodis board and overwhelmingly accepted by Geodis shareholders.
After increasing its holding to 98.40 pct of Geodis capital, SNCF then implemented a squeeze-out to buy the remaining shares on August 8 and Geodis shares were delisted from the Euronext Paris stock exchange on that day.
SNCF will combine Geodis, with 2007 revenues of EUR 4.8 billion, its rail freight division and several smaller transport subsidiaries, into a new group with 2008 revenues of some EUR 8 billion and about 50,000 employees. The new company will include Geodis Calberson, one of the leading express and parcels operators in France.
Read MoreGeodis supports SNCF takeover bid
Geodis has decided to recommend the EUR 600 million takeover bid from rail operator SNCF to its shareholders. The deal will create Europe’s fourth-largest freight group, including a major express business in France.
The Geodis board said the offer was a fair price and that becoming part of the SNCF group would strengthen Geodis. It unanimously recommended that shareholders should accept the EUR 135 per share offer.
SNCF, which already holds 42.37 pct of Geodis’ share capital and 45.79 pct of voting rights, announced in early April it would offer EUR 600 million to buy full control of Geodis.
SNCF plans to combine Geodis, with 2007 revenues of EUR 4.8 billion, its rail freight division and several smaller transport subsidiaries, into a new group with 2008 revenues of some EUR 8 billion and about 50,000 employees. The new company would include Geodis Calberson, one of the leading express and parcels operators in France.
Read MoreSNCF may spend another 2 bln to 3 bln euros after Geodis acquisition – chairman
SNCF may spend another 2 billion to 3 billion euros on investments on top of the 600 million it is offering to pay for shares it does not already own in Geodis, Guillaume Pepy, chairman of the state-owned railway operator, told Le Figaro newspaper.
He plans further acquisitions, including an imminent one in Europe, and he is interested in port services to complete the company’s offering, Pepy said in an interview with the daily.
‘In a few days we will announce the acquisition of a continental European rail operator, which will open the door for us to new countries, notably Eastern Europe,’ he said.
The acquisition of Geodis, in which SNCF currently owns 42.37 percent, will make the transport of goods the group’s biggest division in terms of sales, Pepy said.
SNCF-Geodis will be among the world’s top five logistics groups, behind Deutsche Post AG unit DHL, Deutsche Bahn and Kuehne & Nagel International AG, the SNCF chairman said.
The Geodis deal will lift SNCF’s debt to equity ratio from 0.5 to 0.6, which is still only one-third of the level of Deutsche Bahn, and the imminent acquisition will not fundamentally alter those figures, he said.
‘That means we can still envisage profitable investments of 2 billion to 3 billion euros,’ Pepy said.
Shares in Geodis soared 30 percent today after Pepy unveiled that SNCF plans to offer 135 euros per share for the rest of the transport company.
Read MoreMER Magazine
The Mail & Express Review (MER) Magazine is our quarterly print publication. Packed with original content and thought-provoking features, MER is a must-read for those who want the inside track on the industry.