Deutsche Post Enters Logistics Field With Danzas Purchase

By Staff -- Logistics Management, 3/1/1999

Whoever said bureaucracies can't move fast never dealt with Deutsche Post, the German postal service. On Dec. 10, Deutsche Post announced that it would launch a $1 billion tender offer aimed at shareholders of Switzerland's Danzas Holding AG for all of the international logistics company's publicly held shares. By mid-February, the postal service had in hand 93.3 percent of the voting rights for Danzas.

The Swiss company began as a freight forwarder in Basel, but now boasts worldwide coverage with 16,000 employees and annual revenues of $4.6 billion. It will continue to operate as an autonomous company and will retain its existing management, including CEO Peter Wagner. According to a statement issued by the two companies, no restructuring or employment reductions are expected.

The Danzas acquisition is the latest manifestation of the German postal service's desire to become a major player in the global logistics market. With 250,000 employees and annual revenues of more than $16 billion, the partially privatized agency has the clout to achieve its goal. In addition to Danzas, Deutsche Post has purchased major stakes in DHL International, Securicor, a United Kingdom-based parcel service, and several smaller French and British parcel companies.

Deutsche Post clearly is positioning itself to take advantage of postal deregulation in the European Union, which is scheduled to take effect in 2003. Danzas will be the centerpiece of the postal service's global strategy, says Deutsche Post CEO Dr. Klaus Zumwinkel. "Danzas," he reports, "will complement the activities of Deutsche Post, will become the logistics pillar of the group, and will reinforce our strong position in the world marketplace."

Zumwinkel also notes that the Danzas purchase will help Deutsche Post create a comprehensive service network that will allow the postal service to compete for global contracts in the future. "Long-term competitiveness will require the ability to offer customers the broadest possible service from a single source, i.e. one-stop shopping," he says. "In the future, there no longer should be any logistics problem for which we cannot submit an immediate proposal of excellent quality to our customers."

For Danzas, the union with Deutsche Post should bring an injection of cash, complementary value-added services, and the rock-solid stability of a state-operated partner.

Competition authorities in the United States and Switzerland already have approved the takeover. The European Union has not yet issued a ruling in that regard.