TNT and PIN Group could merge their German mail businesses to form a large single rival to DeutschePost once the German postal market is liberalised in January 2007, according to reports today.
Publishing group Axel Springer AG is in talks to sell its majority holding in PIN Group toTNT, several German newspapers reported. The two operators, which are the leading challengers toDeutsche Post in its home market, could then be merged into a single network.
None of the parties involved confirmed the reports. An Axel Springer spokeswoman, however,was cited as saying that the group is “currently reviewing strategic options how to develop the PINbusiness”.
The Financial Times Deutschland reported that Axel Springer, which bought a majority in PINGroup for EUR 510 million as recently as in June, is now seeking to quit the mail business, andwants to sell most of its holding to TNT. This would reduce it from 64% to 25%. Most of the otherPIN Group shareholders are also publishing companies.
Springer chief Mathias Döpfner had said at the time of the acquisition that mail could growinto an important new business area for the publisher. But members of Springer’s supervisory boardnow opposed the heavy investment necessary in the mail sector, the newspaper wrote.
The business publication Manager Magazin wrote that Springer wanted to get out of the mailsector due to the planned minimum wage legislation which would make it impossible for private mailfirms to operate profitably. Springer had also been impacted by the withdrawal of EUR 800,000 worthof Deutsche Post advertising from its publications after it criticised the minimum postal wageplans, the magazine reported.
Reuters news agency cited a source as saying that TNT Post Germany and PIN Group, numbers twoand three in the German mail market, could be merged, and progress was expected by the end of theyear.
Separately, the political dispute within the German coalition government over the minimumwage in the postal sector continued this week. The latest dispute focuses on whether the dealagreed between the Deutsche Post-dominated employers association and the Verdi union isrepresentative for the whole German postal industry in terms of employee numbers.
