EC green lights DHL acquisition of UK Mail

The European Commission competition authority has given Deutsche Post DHL to buy UK Mail.

The announcement was made by the companies in a statement on Friday the 16th December.

As previously reported by Apex Insight, Deutsche Post DHL plans to use the acquisition to strengthen the European market position of its parcels division DHL Parcel by adding commercial and operational capabilities including the pick up and delivery service in the UK.

Where FedEx had some worries about taking on TNT the DHL acquisition of UK Mail is a different order of business. TNT was a major European player and its acquisition impacted the ecosystem of the major players in the whole region. UK Mail by comparison is only a small scale competitor for its chief market rival Royal Mail and where the FedEx deal caused a splash the UK Mail deal will cause barely a ripple in Europe.

However, Royal Mail now has one of the biggest delivery companies in the world with direct access to the mail business and this may cause a few shivers in its own head office, even as it is competing fiercely for the parcels business. Royal Mail now faces the German company in the ever dwindling business mail market and this could be a threat for the national postal operator – but also very good news for customers who will no longer be dealing with a de facto monopoly…

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