Deal News Transportation & Logistics What's up in your market – a ...

Deal News – Transportation & Logistics
What's up in your market – a focus on deals activity, October 2012
Pacific Network
Global Logistics to
be acquired by
Damco
UPS/TNT Express:
EU to release
‘statement of
objections’ as early
as next week –
report
Damco, the global freight forwarder and logistics provider, will acquire
Pacific Network Global Logistics (PacNet), a leading freight forwarder in
China and Australia. Damco is the logistics arm of the A.P. Moller-
Maersk Group, with 10,800 employees worldwide and a turnover of USD
2.8bn in 2011. PacNet, headquartered in Australia, has 382 employees
and a turnover of USD 180m in FY2011. Damco has been looking to
strengthen its overall presence in Australia in the segments where
PacNet is active for some time. Combining forces with PacNet is in that
context a very logical step and an almost perfect fit. By combining forces
with PacNet, Damco significantly enhances its platform in the North
Asia and Asia Pacific regions. As a result, Damco will gain market
leadership positions in retail and lifestyle sectors in Australia and
further strengthen its position in airfreight from China to Australia. “I
am happy to be joining forces with PacNet which is another good step
forward to further build our global business. PacNet has a high
reputation for service in Australia, in the apparel, footwear and retail
sectors,” says Damco CEO Rolf Habben-Jansen The acquisition will
strengthen Damco’s forwarding capabilities in Australia, Hong Kong and
Mainland China. “We have seen a growing demand for a broader
outreach in recent years and we feel that by joining Damco we can
provide our customers with a strong global presence,” says Paul
Milborrow, CEO of PacNet. The PacNet senior management team will
join Damco, and the existing operations will be run by largely the same
people and the same teams, with no disruption to the high level of
service all customers are accustomed to receiving.
10.10.2012 Company Press Release(s)
The European Commission could release a “statement of objections” to
the proposed takeover of TNT Express by UPS next week, the Financial
Times reported. The newspaper cited people involved in the process who
said the EU’s investigation of the deal is nearing a conclusion.
Investigators have informed UPS that the statement of objections will be
released unless the listed, Atlanta, Georgia- based package delivery
group offers to make disposals or commitments on antitrust issues, the
item said. UPS will only formally offer such commitments after it has
reviewed the full EU objections to the deal, according to the report. UPS
said it and TNT Express would continue talks with the regulator and that
they were confident that the EUR 5.2bn (USD 4.04bn) takeover will be
cleared. EU competition commissioner Joaquin Almunia has concerns
that the acquisition of Netherlands-based TNT Express would leave
Europe with only three companies with the capability to provide
comprehensive services, the report continued. The impending release of
the statement of objections, while not unusual, is a setback for UPS, the
article said, adding that the company had initially been hoping to secure
regulatory approval for the deal in July.
10.10.2012 Financial Times