Tag: UK

What future for Royal Mail as Deutsche Post wades into UK with mooted bid for Exel?

Posted by | Sep 2, 2005 | |

Allan Leighton, chairman of Royal Mail, can only look on and weep. While overseas rivals respond to the challenge of deregulation by expanding into new businesses and new territories, he’s condemned to make the best of what he’s got. Trapped within the Treasury controlled boundaries of the public finances, all he can do to meet the challenge of postal competition is slash costs to match the decline in revenues. The already privatised Deutsche Post, by contrast, is moving to reduce its dependence on the German domestic market, where its monopoly is due to end in 2007, by expanding overseas.

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Dutch group looks to hire rival force of British postmen

Posted by | Sep 2, 2005 | |

Peter Bakker, head of the Dutch post office, said yesterday that the company is considering hiring its own force of postmen to compete head on with Royal Mail.
The company, TPG, trades as TNT Mail in the UK, and already delivers heavier mail door-to-door using Express Dairies. Mr Bakker said that although replicating Royal Mail’s entire network was “not viable”, hiring large numbers of postmen was “one of the models” TNT was looking at in the UK. He expected there would be “one or two companies with competing networks to Royal Mail” after the mail market was fully opened up to competition. Royal Mail would still maintain its leading position, but he saw no reason why TNT Mail could not have between 10pc and 15pc of the UK mail market. “We have the capability to succeed,” he said. Mr Bakker is looking at an “end to end” delivery strategy that doesn’t use the Royal Mail’s access agreement which TNT Mail uses at the moment.

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Deutsche Post could face a bid battle with UPS

Posted by | Sep 2, 2005 | |

Deutsche Post may have made the first move on Exel but it is unlikely to be the sole bidder. UPS, the US package delivery company, and TPG, the Dutch logistics group, have also been touted as possible bidders. Alastair Gunn, analyst at Arbuthnot Securities, says: “Whether it is Deutsche Post who ends up with Exel, is doubtful. I think UPS is likely to outbid them.” He adds: “In terms of other companies coming in, nobody else can compete. It would be a waste of management time and energy.” An acquisition of Exel by UPS would underline the Atlanta-based company’s ambition to increase its presence in Europe, where it is challenging the dominance of DHL, owned by Deutsche Post, and TNT, owned by TPG.
UPS has become increasingly reliant on international revenues, especially in Europe and Asia, to offset slowing growth and increasing competition in the US.

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Deutsche Post delivers takeover proposal to British rival Exel

Posted by | Sep 2, 2005 | |

Deutsche Post has approached Exel, its British global supply chain rival, about a possible takeover that analysts say could cost more than EUR5bn (USD6.5bn).
‘Discussions are at a preliminary stage and there can be no certainty as to their outcome,’ Deutsche Post said in a statement. Neither it nor Exel gave further details. The news sent shares in Exel soaring by as much as 17%, valuing it at GBP3.45bn (USD6.5bn), while Deutsche Post shares fell EUR 0.60 to EUR19.84 amid concerns it may be overpaying.

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TNT Mail UK wins Npower as it weighs up hiring postmen

Posted by | Sep 2, 2005 | |

TNT Mail has won a three-year deal to handle energy supplier Npower’s customer statements and direct marketing materials, as its parent company revealed it is drawing up plans to offer end-to-end delivery. Npower is TNT’s first utility sector client and follows Powergen’s move to private mail operator UK Mail.
Npower has more than 6m residential and business customers and the deal with TNT Mail is expected to cover around 50m items annually. Hilary O’Grady, the energy supplier’s logistics manager, said: “TNT has the size, scale and resources to deliver on what it promises.” It will use TNT’s Premier service, providing collection and delivery, using Royal Mail’s network for final sort and “last mile” delivery, in 48 hours.

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