Publishers to compete with Deutsche Post
Three of Germany’s largest newspaper groups are joining forces to create what they say will become the largest competitor to Deutsche Post once the country’s postal market is fully opened to competition in 2008. Axel Springer, the publisher of the mass-market Bild tabloid, is teaming up with Georg von Holtzbrinck, publisher of the weekly Die Zeit and financial paper Handelsblatt, regional newspaper group WAZ and a private equity group from Luxembourg to set up a letter delivery group. The company, which will be run by Gunter Thiel, an experienced logistics manager, is aiming to increase its sales from an expected Euros 100m (Dollars 124m) in 2006 to Euros 1bn in 2010 by eating up market share of the former monopoly. It is the second group in a week to say it would enter the postal delivery market following Otto-Versand of Hamburg. Others are expected. The combination of three such powerful media groups – with total sales of more than Euros 6bn – highlights the attraction of a liberalised German market and illustrates why Deutsche Post has in recent years tried so hard to expand internationally and into new areas.
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