France’s GeoPost is stepping up its international expansion with regulatory approval for itstakeover of Polish courier Siodemka, implementation of a shareholding deal with Bulgarian delivery
firm Speedy and an international partnership with Japan Post.The Polish competition authority UOKiK has given the green light for DPD Polska’s 100%acquisition of Siodemka for an undisclosed sum. The combination of DPD Polska and Siodemka willcreate the country’s second-largest parcel operator with revenues of more than PLN 1 billion(€238.5 million) and a market share of about 24%.
At present, DPD Polska, with more than 5,500 workers, 3,000 vehicles and 50 branches, claims tobe the third largest operator in Poland with a 16% market share. Siodemka, with 1,400 employees and2,100 couriers operating a network of 40 branches, is about half the size of DPD Polska. But it isparticularly strong in B2C deliveries and is benefiting from the country’s fast-growing e-commercebusiness.
UOKiK director Robert Kaminski stated that the acquisition would not impact negatively oncompetition and consumer service as DPD would remain subject to competition in future. Theauthority said it conducted an in-depth review of the Polish express and parcels market, covering40 companies.
GeoPost was not immediately able to say today when the acquisition would go ahead. DPD Polskastated briefly that after the merger it would be able to offer customers “the highest servicequality with a branch network covering the whole of Poland”.
Speaking earlier this year at the time of the acquisition announcement, Rafal Nawloka, Presidentof DPD Polska, commented: “Our merger with Siódemka will extend our product range with innovative,user-friendly solutions, aimed in particular at the e-commerce sector. Siódemka has extensiveexperience and reliable know-how in this area.”
Meanwhile, GeoPost has acquired an 11% stake in Speedy, the DPD partner company in Bulgariasince 2010, for 12 million levs (€6 million) under an agreement to take a 25% strategic holding.The French group has an option for a majority stake in 2020.
In exchange, Speedy will take over the smaller companies GeoPost Bulgaria and DPD Romania, whichare owned by GeoPost and its Turkish partner Yurtici Kargo. It will invest a combined 30 millionlevs (€15 million) in the two acquisitions and further investments in Romania, to be financedthrough a capital increase and a long-term investment loan.
The two-way deal is designed to create a strong regional player providing integrated services toclients in both Bulgaria and Romania, while securing Speedy’s role as a DPD partner through thefinancial stake. Speedy had revenues of 66 million levs (€33 million) last year while DPD Romaniahad revenues of 65 million lei (€14.5 million), according to reports.
In a third move, Japan Post and GeoPost have sealed an international alliance under which JapanPost will buy into Hong Kong-based firm Lenton, which is partly owned by the French group, and useGeoPost’s network for international delivery.
As part of the agreement, Japan Post will buy a 14.9% stake in Lenton Group while GeoPost willretain a 34.7% stake in the express delivery firm, the companies said in a jointstatement.
Japan Post wants to use the French group’s network to target growing e-commerce demand in Asiafor Japanese products. The export shipping service will launch on October 30, covering 49 countriesin Asia Pacific and Europe and Japan Post hopes to ship some one million parcels a year through thenew service.
“Japan Post’s new international parcel delivery operations will assure high quality serviceglobally,” said Toru Takahashi, president of the Japan Post Holdings unit. The company expectsbetter delivery quality than through the traditional postal network, including more precisedelivery times and better tracking of shipments.
