Postbank, the Deutsche Post World Net (DPWN) banking subsidiary, will pay 986 million euros cashfor the 850 post offices it is buying from its parent company. The deal, effective from January 1,
2006, leaves Deutsche Post with just over 11,000 post offices in Germany.Under the deal, Postbank, which is now Germany’s leading retail bank, will gain its own retailnetwork and continue to sell its products and services through shop implants in a further 8,100post office branches. Deutsche Post products and services will still be offered through the newPostbank branches. Postbank will also gain 800 Service Centers with the planned acquisition ofGermany’s BHW bank.
DPWN said the price for the outlets reflected their future positive financial contribution tothe group. To date, Postbank has paid Deutsche Post a fee for using the post office outlets. Thisamounted to 496 million euros in 2004 and 454 million euros the year before. The annual fee willfall to about 150 million euros in future while DPWN will pay Postbank in future for the use of thenew Postbank outlets.
About 9,600 staff will transfer from Deutsche Post to Postbank under the agreement. DPWNreiterated that its long-term majority ownership of Postbank was not affected by the deal.
