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Bonn (pte035/25.03.2003/14:47) - Deutsche Post http://www.deutschepost.de announced today it was taking over US express service Airborne http://www.airborne.com . The group has reported that its subsidiary DHL will purchase Airborne for a cash price of 21.25 dollars per share and total amount of 1.05bn dollars.
In taking over Airborne, the German postal company hopes to concentrate more on the US market, where the potential for growth is greater. The transaction will enable both partners to increase their express service capacity and market share in the United States, making the new company the third largest express parcel service in the US after United Parcel Service (UPS) and FedEx.
All Airborne business operations, with the exception of its airline, will be run by the new service under the name DHL. Airborne's cargo express airline will be run as a separate company called ABX Air http://www.abxair.com . ABX Air is to stay in the hands of US shareholders.
Deutsche Post is convinced DHL and Airborne will complement each other perfectly, combining DHL's international importance with Airborne's strong position on the US market. According to Deutsche Post, DHL has the world's most comprehensive network for express delivery, making it market leader outside the US. Airborne currently holds an 18.8 per cent share on the market for overnight delivery. In 2002 the service delivered about 356 million parcels in the US.
The new joint company will be headed by Carl Donaway, currently CEO of Airborne. The deal still requires approval from shareholders and the relevant authorities, but is expected to be completed by summer 2003.
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