Deutsche Post World Net (DPWN) has confirmed that it is in talks with Britain’s Exel plc over apossible takeover bid. By buying Exel, DWPN would become the world’s largest logistics company with
a clear market leadership. The deal would be one of the largest acquisitions in the worldwidelogistics sector in recent years if it goes ahead. Financial analysts estimated that the pricecould be as high as five billion euros. There is also speculation that UPS might make acounter-offer for Exel.In a brief statement issued on September 1, DPWN said: “Deutsche Post AG has approached Exel Plcwith respect to a possible offer for Exel. Discussions are at a preliminary stage and there can beno certainty as to their outcome.” In a similarly worded statement, Exel confirmed the approach,stressed that discussions were at a preliminary stage and added that a further announcement wouldbe made in due course.
Reports have long circulated that DPWN is interested in acquiring Exel to achieve its aim ofbecoming the world’s largest logistics company. Exel is the world leader in the highly fragmentedcontract logistics sector with a market share of 5.6 per cent, ahead of TNT Logistics (4.1 percent) and Wincanton (2.5 per cent). DHL Solutions, the DPWN contract logistics company, is numberfour with a 1.8 per cent market share, according to DPWN market data.
In the air freight sector, DHL Danzas Air & Ocean (6.4 per cent market share in 2003) isalready the market leader while Exel is number three (4.7 per cent). In ocean freight, DPWN wouldovertake Kühne + Nagel as the world’s largest sea freight forwarder if it acquires Exel. DHL DanzasAir & Ocean is currently number two (5.5 per cent market share in 2003) and Exel is number five(2.9 per cent), while KN has a market share of 7.3 per cent.
DPWN is already number one in international express through DHL Express, whose acquisition costDPWN a total of 2.4 billion euros. Exel is not present in the express sector.
