Regulator clears Evri-DHL eCommerce UK monster merger

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https://businesscloud.co.uk/news/regula ... er-merger/

The merger of DHL’s UK eCommerce business with parcel delivery giant Evri is to go ahead after regulators cleared the deal.

The German multinational company DHL Group will take a minority stake in private equity-backed Evri, with the merged business set to deliver 1bn parcels and 1bn business letters annually.

The Competition and Markets Authority had investigated the anticipated acquisition but has now decided not to refer the deal to a phase 2 investigation.

Evri was acquired by US investment group Apollo last year from Advent International for £2.7bn.

Evri will retain its core branding with DHL eCommerce in the UK operating under Evri Premium – a network of DHL eCommerce. It marks an entry into the UK business letter market for Evri.

The new group will include an expanded international capability for inbound and outbound parcels by making use of DHL eCommerce’s extensive expertise in cross-border parcel shipping and out-of-home network of nearly 150, 000 global access points.

This includes faster transit times across the world with access to DHL’s own eCommerce network in Europe, the US and selected Asian markets such as India, DHL said.

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“We are excited that DHL eCommerce UK will merge with Evri to bring together two highly complementary UK businesses – committed to innovation and offering customers and clients the best possible service,” said Martijn de Lange, CEO of Evri.

“By combining Evri’s scale, innovation and DHL eCommerce’s best-in-class premium van network, we are creating the pre-eminent parcel delivery group in the UK. Over the last decade Evri has grown ten-fold in size and this transaction will further expand our access into the European and global eCommerce markets.

“Since Apollo-managed funds came on board as our owners, they have backed our intent to drive forward and grow to become the UK’s premier parcel delivery business.”

On completion, the combined group will bring together a team of over 30,000 couriers and van drivers, plus 12,000 employees, with a fleet of 8,000 vehicles.

De Lange will lead the combined business in the UK, with Stu Hill, currently CEO of DHL eCommerce UK, becoming MD of Evri’s Premium DHL network business. The DHL eCommerce UK executive team will also join the new group.

Evri will continue to be majority owned by Apollo-managed funds.