Germany's Deutsche Post DHL Group announced Wednesday that it has agreed to acquire UK Mail Group for 242.7 million pounds ($315.5 million) to strengthen its position in the U.K. parcel market. Under the terms of the offer, shareholders would receive 440 pence in cash for each UK Mail share. Deutsche Post, Europe's leading parcel-delivery company, said the offer represents a premium of around 43% to UK Mail's closing price of 307.5 pence on Sept. 27. UK Mail's directors consider the terms of the offer to be "fair and reasonable," and intend to recommend unanimously that shareholders vote in favor, Deutsche Post said. "With this acquisition, we will further extend our network and have a strong foothold in Europe's three largest e-commerce markets, the U.K., Germany and France, which account for over 60% of online retail in the continent," said Juergen Gerdes, board member at Deutsche Post. Deutsche Post said the acquisition would deliver "significant synergy benefits." "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," said Peter Kane, Chairman of UK Mail. UK Mail is one of the largest integrated mail and parcel operators within the U.K., offering parcel and mail delivery solutions worldwide. It has a national network of more than 50 sites and 2,400 vehicles. Source: MarketWatch
