Source Pravda.Ru

British-based Exel PLC to become №1 in global logistics

German mail and package delivery company Deutsche Post AG said Monday it will take over British-based Exel PLC for Ђ5.5 billion (US$6.7 billion), making it the No. 1 company in the global logistics industry.

The deal, which still has to be approved by Exel shareholders, is Deutsche Post's biggest international acquisition and comes as Europe's biggest postal service provider is trying to reduce its dependence on its German mail operations, according to the AP.

"This is a logical step in our corporate strategy and enables us to diversify our services and become less reliant on our domestic mail business," Deutsche Post Chief Executive Klaus Zumwinkel said at a news conference.

He said the deal would reinforce Deutsche Post's logistics business at a time when the company is expecting its mail business to decline. The company is due to lose its monopoly on the German mail business in two years.

John Allan, chief executive of Bracknell, England-based Exel, said that the board had provided "irrevocable" support for the offer and urged shareholders to approve the merger.

However, Allan, who will lead the integration process and remain head of the newly combined logistics activities, said the Exel board would consider any potential rival offers.

"This transaction is recommended by our board unanimously, but equally our board is mindful of its fiduciary responsibilities and if other offers came along we'd obviously have to give them appropriate consideration," he said.

Analysts have suggested that U.S.-based UPS Inc. could make a rival bid for Exel.

Comments
Russia starts Star Wars first. USA concerned and puzzled
Turkey and USA take their relationship to breaking point
US sanctions to kill Russian banks and sovereign debt?
US sanctions to kill Russian banks and sovereign debt?
Details of Putin-Merkel surprise meeting unveiled
Turkey and USA take their relationship to breaking point
Iran shows new ICBM that can evade radars
US refuses to explain reasons behind new 'draconian' sanctions
Russia starts Star Wars first. USA concerned and puzzled
US sanctions to kill Russian banks and sovereign debt?
Pilot shares his impressions after flying Su-57 fifth-generation fighter
Russia to respond with military-strategic blow to new USA's sanctions
Russian government prepares to get rid of US dollar in economy
Russia to respond with military-strategic blow to new USA's sanctions
US sanctions to kill Russian banks and sovereign debt?
Russia builds new robotic tank invulnerable to mines
Caspian Convention challenges Gazprom's rule in Europe
US sanctions to kill Russian banks and sovereign debt?
Turkey desperately tries to rescue its national currency as it falls to all-time lows
Boy loses hand when jumping into the river
North Korea: Standing proud for Korea!