14.10.2016 - Deutsche Post DHL Group strengthens European cross-border parcel network

(dp dhl) Deutsche Post DHL Group, the world’s leading mail and logistics group, has reached an agreement on the terms of a recommended cash offer to acquire the entire issued and to be issued ordinary share capital of UK Mail Group plc (‘UK Mail’), one of the largest integrated mail and parcel operators within the United Kingdom. The acquisition will allow Deutsche Post DHL Group to bring its expertise in e-commerce and parcel delivery together with UK Mail’s existing customer base and network, to drive substantial shareholder value. In particular, the acquisition of UK Mail:

- will strengthen the European market position of DHL Parcel, adding a commercial and operational presence, including pick-up and delivery capabilities, in the UK, Europe’s largest e-commerce market

- enhances Deutsche Post DHL Group and UK Mail’s customer value propositions

- strengthens UK Mail’s UK market position

- delivers significant synergy benefits

Jürgen Gerdes, Deutsche Post DHL Group Board Member: ‘The on-going expansion of our parcel network in Europe is driven by increasing demand within our e-commerce customer base for cross-border deliveries. Deutsche Post DHL Group, as the leader in the German parcel market, has already established a strong position in a number of European countries. UK Mail is a well-run business and an established provider of quality delivery services in the UK and offers a complementary fit with our integrated offering. With this acquisition, we will further extend our network and have a strong foothold in Europe’s three largest e-commerce markets (the UK, Germany and France), which account for over 60% of online retail in the continent.’