DHL is buying the leading private express firm in the Czech Republic, PPL CZ, to strengthen itsposition in the country, Deutsche Post World Net (DPWN) announced today. DHL is already the
international express market leader in the Czech Republic and would now be combined with a strongdomestic business, DPWN said.Based in Prague, PPL is the No. 1 private player in the Czech domestic express parcel market,serving customers mainly from the IT, pharmaceutical and electronic industries. PPL operates morethan 450 vans and 11 depots across the Czech Republic.
According to CEP-Research data, PPL is the Czech domestic market leader with a share of about 33per cent, ahead of the Czech post office, the Top Trans group and DPD. DHL leads TNT and UPS in theinternational express rankings.
Peter Kruse, Member of the Board of Deutsche Post World Net responsible for DHL Express Europe,said: “PPL’s strengths in the Czech Republic complement ours perfectly. This transaction alsorepresents an important strategic step for us into the fast growing markets to our east.” Theacquisition also enabled DHL to expand its business in Central and Eastern Europe. In particular,trade flows between the Czech Republic and Germany were growing, DPWN pointed out.
Pavel Horák, Chief Executive Officer of PPL, added: “PPL has succeeded by providing reliable,high quality service at fair prices to our customers. Our customers will continue to enjoy thesesame advantages, with the added benefit that through DHL, PPL will become part of the leadinginternational network in Europe.”
The acquisition is subject to approval by the Office for the Protection of Economic Competitionof the Czech Republic. Provided that this approval is obtained, it is expected that the acquisitionwould be completed in the first quarter of 2006. Both parties have agreed not to disclose financialdetails.
