Deutsche Post DHL has agreed an offer to buy UK Mail for almost £243m, which will see it compete with Royal Mail for parcel deliveries.
Peter Kane, chairman of UK Mail, said: "The board believes that UK Mail will benefit significantly from becoming part of Deutsche Post DHL and will be better positioned to continue to develop our parcels and mail businesses. Our customers will have direct access to Deutsche Post DHL's integrated global parcel network and comprehensive logistics capabilities. We will have opportunities to win additional business from Deutsche Post DHL's existing customer base."
Peter Kane and his brother Michael began Yellow cars back in 1971, enjoyed dramatic growth following TNTs entry into overnight parcels in 1979. The name Business post was launched in 1986. Today as UK Mail they have one of the best state of the art sortation hubs located on the A45 near Coventry.
Shares in UK Mail jumped forty per cent.
The BBC reported the breaking news at mid-day. ‘The purchase is part of a European expansion drive by Deutsche Post. "UK Mail is well-run and an established provider of quality delivery services in the UK. It offers a complementary fit with our integrated offering," said Deutsche board member Jurgen Gerdes.
UK Mail directors said it believed the deal was "fair and reasonable". Shareholders have yet to agree but under the terms of the deal they would receive 440p a share.