German Postal Service Makes $1.1 Billion Bid For Danzas
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So far this year, the state-owned postal service, which is slated for privatization in 2000, has acquired or taken major stakes in three other transportation companies. Deutsche Post took a 25% stake in U.S.-based DHL for an undisclosed sum in March, and paid about $368 million for a 50% stake in one of Britain's largest parcels companies, Securicor, in November. Last week, the company announced it was acquiring a major French distribution company, Ducros.
According to DP, Danzas will "become the logistics pillar of Deutsche Post", which last year had revenue of about $16.8 billion, primarily from its postal business in Germany.
"This continuing abuse of profits made within the German Post's monopoly area, to cross-subsidize services in business areas where it competes in an open market should not be allowed to continue," said Randy Pulito, President of UPS Europe.
By some estimates, the German post office will have acquired close to $2 billion in transportation assets in less than a year if the Danzas deal goes through. It will also have reached its goal of becoming the largest integrated logistics company in Europe.
"Long term competitiveness will require the ability to offer customers the broadest possible service from a single source, i.e. genuine one-stop shopping," says Dr. Klaus Zumwinkel, cheif executive officer of DP. "In the future there should no longer be any logistics problem for which we cannot
ubmit an immediate proposal of excellent quality to our customers."
For the full story, see the Dec. 21 print edition of Transport Topics. Subscribe today.
