Deutsche Post Buys Transport Unit

March 23, 1999 3:00 PM, EST

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PARIS — Germany’s state-owned postal service, which has already spent more than $2 billion in the last year acquiring freight transportation companies, announced it will shell out another $580 million for Royal Nedlloyd’s European land transport and distribution businesses.

Deutsche Post and its recently acquired partner, Danzas Management AG, said they will split up Nedlloyd’s European Transport and Distribution unit, which operates as Van Gend & Loos. The parcels section of the business will be incorporated into DP, and the LTL business will be managed by Danzas.

Last year, Van Gend & Loos produced about $1.6 billion in revenue and had profits of about $35 million.

Dr. Klaus Zumwinkel, CEO of DP, said this latest acquisition will strengthen the postal service’s European parcels network, particularly in Holland and Belgium, where DP’s arch rival, the privatized Dutch postal service, TNT Post, is dominant.

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