Deutsche Post DHL has reached an agreement to buy UK Mail for approximately 242.7 million pounds, or 281.6 million euros. With the acquisition, DHL will further strengthen its position in the European postal market, while putting more pressure on competitor Royal Mail in the United Kingdom.
As the Guardian puts it, the acquisition comes after “a difficult period for UK Mail”. The postal company had some problems at its automated sorting facility and saw its boss Guy Buswell leave a week after it issued a second profits warning in three months due to these problems.
‘UK Mail will benefit significantly’
“We have made good strategic progress in recent years, establishing leading positions in our key markets of parcels and mail, investing in additional capacity in our operations and in IT and product and service innovation”, Peter Kane, Chairman of UK Mail, said. “However, the Board believes that UK Mail will benefit significantly from becoming part of Deutsche Post DHL, and will be better positioned to continue to develop our parcels and mail businesses with the benefit of Deutsche Post DHL’s greater financial and operational resources.”
About UK Mail
UK Mail is one of the biggest mail and parcel operators in the UK, offering solutions both locally and worldwide. It has a national network of more than 50 sites and 2,400 vehicles.