Deutsche Post DHL Group has announced an agreement to acquire UK Mail Group for £242.7 million (€281.33 million).
The cash offer of £4.40 per share represents a premium of 43.1 per cent over the closing price per UK Mail share on 27 September, and Directors of UK Mail reportedly intend to make a unanimous recommendation that company shareholders accept the offer.
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.
According to Deutsche Post DHL, the acquisition strengthens the European market position of DHL Parcel, adding a commercial and operational presence including pick-up and delivery capabilities in the UK.
“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,” said Juergen Gerdes, Deutsche Post DHL Group Board Member.
“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 per cent of online retail in the continent.”