Deutsche Post DHL Group to acquire UK Mail Group

Deutsche Post DHL Group agreed to acquire UK Mail Group for US$315.5 million in a bid to strengthen its presence in the U.K. e-commerce market. The German parcel-delivery company is offering a 43 percent premium on shares, spurring UK Mail’s directors to unanimously recommend that shareholders vote in favor of the deal.

Juergen Gerdes, a Deutsche Post DHL Group board member, explained that, “The ongoing expansion of our parcel network in Europe is driven by increasing demand within our e-commerce customer base for cross-border deliveries.” He added that Deutsche Post DHL Group had “already established a strong position in a number of European countries.” The U.K., Germany and France account for more than 60 percent of online retail in the continent.

Deutsche Post has been on a buying/expansion spree of late. In January, the German company bought a 27.5 percent stake in France’s Relais Colis to strengthen its foothold in Europe’s third-largest e-commerce market. Earlier this month, the company added ventures in Hungary and Slovenia, expanding its presence to 19 European countries, according to a company spokesman.

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