Airborne Purchase Complete
More competition and wider product range for customers - Strategic milestone for Deutsche Post World NetBonn, 08/15/2003, 11:30 AM CEST
The purchase of US company Airborne through Deutsche Post subsidiary DHL, which was announced in March this year, was on Friday successfully completed.
At Thursday's shareholders' meeting 98.7 percent of shareholders approved the takeover.
"The strategic purchase of Airborne will help us become a significant player in the US, the largest express market in the world, as well as the world's number one logistics group," said Dr Klaus Zumwinkel, Chairman of Deutsche Post World Net's Board of Management.
"The main beneficiaries of increased competition in the US market which is dominated by UPS and FedEx will be the customers," commented Uwe Doerken, DHL's CEO. "The combination of Airborne's strong domestic network and DHL's international network, their expertise in the cross-border business and an extended product offering will open up a whole new range of possibilities for customers in the US and worldwide."
Having given their approval to the takeover, existing Airborne shareholders will receive EUR 19.88 (US$ 21.25) in cash per share (total amount: EUR 980 million). In addition, for each share previously held in Airborne they will receive one ABX Air share, thereby becoming the future shareholders of the spun-off airline. A service level agreement (ACMI) will be signed between the new company and ABX Air.
The joint company will trade under the name DHL. With more than 40,000 staff and subcontractors it will serve customers in the US and operate services from the US to more than 220 countries around the world. The integration phase is expected to end within the next one to three years and will involve a review of human resources and operational locations.