Parcels group UK Mail (UKM) is to be acquired by expansive German courier giant Deutsche Post DHL (Ger: DPW), in an all-cash deal worth £242.7m. Shareholders in the UK company, who were stung by two profit warnings last year following issues with a Midlands-based sorting plant, saw their holdings in the group grow by 43 per cent to the 440p target price following the announcement.
UK Mail chairman Peter Kane said Deutsche Post DHL's "greater financial and operational resources" would be better for customers and the group. Members of Mr Kane's family and several other shareholders owning a 59.7 per cent stake in the business have already voted in favour of the deal, which will see all UK Mail investors paid the upcoming 5.5p half-year dividend.
The news knocked 3 per cent off shares in Royal Mail (RMG), which is currently facing down competition from DHL and Amazon.
