Analytica’s recent research, though, adds a clear warning with respect to the
last point in stating that ‘Integration is not a licence to win new customers… a
“one size fits all” solution may not be acceptable to all global manufacturers.
This sends out a clear message that customer service must come first.’
Finally, in September 2005, it was announced that Exel’s shareholders had
agreed a massive £3.6 billion takeover bid from DPWN. The logistics arm of
Exel would be DHL, with Exel as a sub-brand (Daily Telegraph, 2005). At the
time it was estimated that the combined Deutsche Post and Exel group would
have between 6 and 7 per cent of the European logistics market.
The only concern about the takeover was whether it would be blocked by
the European Commission on the grounds that it would impede effective
competition in the European logistics market. Although total market share is
small compared to other sectors of business, a dominant firm like DPWN/Exel
could be against the interests of customers of logistics services. After only a
brief period of investigation, the Commission approved the merger.
On the face of it, this deal is about logistics. Underneath, though, there
would seem to be a very serious threat to the UK’s Royal Mail, which in
January 2006 saw its traditional postal business opened up to full competition.
Deutsche Post is already a competitor to the Royal Mail in the bulk mail
market. Its marriage with Exel’s logistics expertise must surely enhance its
opportunities to make further inroads into the UK postal market.