Logistical Takeover

In a deal that has delighted financial analysts all over Europe, Germany’s largest postal group, Deutsche Post, has agreed a takeover of the logistics group, Excel.

The deal, worth £3.7 billion, will create a combined group that will be one of the leading global players in contract logistics, air and sea freight. Analysts have called the deal “compelling” and “brilliant.”

The beauty of the deal is in the enhanced purchasing capacity of the group, say analysts, which, in the words of Deutsche Post’s chief executive, Klaus Zumwinkel, “Will allow the group higher discount rates [on shipping lines] and giving it more negotiating power.”

There are risks, however, as company contracts with shipping companies often have “change of control” clauses, which will give some customers the opportunity to renegotiate their terms. It is also felt that some customers will be wary of such a large operation looking after a key element of their business.

The agreement is expected to be finalised in December.