German Deutshce Post to acquire UK Mail ahead of BREXIT
Deutsche Post DHL have agreed a deal to buy UK Mail as part of a European expansion drive and to accelerate their growth in the UK. The German company have offered UK Mail Shareholders 440p for each UK Mail share held valuing UK Mail at £242.7 million.
The offer price is 43.1% up on UK Mail’s closing share price of 307.5p on Tuesday 27th September. UK Mail Directors consider the terms of the Offer to be fair and intend to recommend unanimously that UK Mail Shareholders vote in favour of the take over bid.
UK Mail is one of the largest integrated mail and parcel operators within the UK offering parcel and mail delivery solutions both locally in the UK and worldwide. They have a national network of more than 50 sites and 2,400 vehicles,
Competing directly against Royal Mail within the UK borders is obviously a goal for Deutsche Post DHL and the UK Mail operations will position it well to do this. It will also give a collection and distribution network to help them compete Royal Mail in the lucrative cross border parcel business against with offerings to existing UK Mail customers.
It doesn’t look like BREXIT has scared the German postal operator off, or perhaps the inward investment into the UK is because of BREXIT rather than in spite of it? Current predictions according to the IMRG are that the UK will send around 1.3 billion parcels this year, at least 0.3 billion of which will be cross border.
That is an interesting move. DHL have not been concentrating on domestic traffic recently and UK Mail are fast becoming the worst courier in the UK, so it doesn’t surprise me that they want to sell up. DHL have one big task on their hands to bring UK Mail service up to scratch.