Tag: Germany

Austrian Post acquires majority in German specialty logistics service company trans-o-flex

Österreichische Post AG (”Austrian Post”) announces the acquisition of a majority stake in trans-o-flex GmbH and its affiliated companies („trans-o-flex”) from private equity funds managed by Odewald & Compagnie (”Odewald & Cie.“) and Alpha Group („Alpha“). Odewald & Cie. and Alpha will retain a stake of 25.1%. The management and supervisory board of Austrian Post have already approved the transaction. The transaction still requires approval by the relevant antitrust authority.

trans-o-flex is one of Germany’s leading specialized logistics service providers for express delivery in the business-to-business segment with a focus on the life science, consumer electronics/home entertainment and lifestyle/cosmetics industries. By assuming corporate leadership at trans-o-flex, Austrian Post is taking control over one of only a few Germany-wide logistics networks with 39 delivery centres. In 2005, trans-o-flex handled approx. 49 million shipments and employed approx. 890 employees. The range of services offered by trans-o-flex also includes specialized services such as transportation of hazardous goods and temperature controlled products. To handle its international freight traffic activities, trans-o-flex operates the European logistics network EURODIS, a combination of European logistics companies that is currently being built up.

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Austrian Post in exclusive talks to buy German firm trans-o-flex

Austrian Post announced today that it is in exclusive negotiations to buy German express firm trans-o-flex, its European parcels cooperation partner. The stock exchange listed Austrian postal operator said it was in talks with the company’s current owners, the private equity funds of Odewald & Compagnie and the Alpha Group. No further information was released. Austrian Post and trans-o-flex agreed a wide-ranging cooperation deal at the end of 2005 following earlier speculation that the postal operator wanted to buy the expanding German specialist logistics company.

Under the cooperation agreement, Post Austria joined the trans-o-flex Eurodis network, providing parcel delivery services in Austria and various south-eastern European countries where it has subsidiaries. In return, Trans-o-flex distributes the Austrian post office’s parcels in Germany. The Eurodis network covers about 20 European countries through a range of partnership agreements.

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Unchanged prices for Deutsche Post domestic mail

Deutsche Post, the German postal service operator, is planning unchanged prices for inland letter post in 2007, in most cases. Applications for pricing are reported by the company to have been submitted to the German networks regulator, and postage is not due to be increased in the regulated section of mail delivery.

Price increases are reported to be planned for deliveries abroad, but the company has indicated that it does not plan to make full use of its scope to raise the price by 0.2 per cent altogether. Deutsche Post expects the regulator to reach a decision within two weeks.

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Deutsche Post reports progress in restructuring of logistics

Deutsche Post, the German postal operator, is reported to be showing progress with the development of its logistics division within subsidiary DHL and with the integration of the UK logistics service provider Exel. Integration is expected to be completed by the end of March 2007, according to a press source citing management.

The group’s logistics division is expected to show turnover well above 18bn euros at the end of the current year, discounting land transport, while ebit is expected to amount to a minimum of 700m euros. Last year, turnover reached 7.9bn euros, ebit 315m euros. By the end of the year, Deutsche Post logistics director John Allan will aim to complete the transfer of the group’s European overland transport from its express division to its logistics arm. It is estimated that this will bring the logistics division additional turnover of around 4bn euros. DHL recently won a contract worth turnover of 2.3bn euros to supply the UK National Health Service, and, following resistance among staff to the privatisation plan, business is reported now to be running smoothly.

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German postal rates fall as competition grows

Prices in the German postal market are falling as competition grows and new entrants gear up for full liberalisation in January 2008, according to a new, in-depth study from CEP-Research, “The German postal market before liberalisation”.

Although the Deutsche Post exclusive licence still restricts the activities of competitors such as express and parcel firms, specialist mail companies and publishing groups, competition is clearly increasing, leading to lower average prices.

“A clear sign for a price war in the German mail market is shown by the development of market revenues and mail volumes since 1998,” commented Björn Sasse, project manager for the study. Projected figures for 2005, for example, show that total mail volumes are expected to show a rise of 6.5% to 18.1 billion, while overall mail revenues rose just 2% to €10.2 billion. The average mail price dropped by 6% last year.

The 117-page, German-language study also highlights future market potential and likely trends such as increasing outsourcing of in-house postal departments to service providers. “Lower prices, new products, improved services and better service quality for corporate customers can be expected from liberalisation in 2008,” added Björn Sasse.

* “The German postal market before liberalisation” can be ordered online from www.cep-research.com for €800. The 117-page study is only available in German.

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