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BONN: September 28, 2016. Deutsche Post DHL (DPDHL) has agreed a £242.7 million cash offer to acquire 100 percent of the UK Mail Group, one of the largest integrated mail and parcel operators in the UK.

For the year ending March 31, 2016, UK Mail saw a significant drop in its pre-tax profit to £10.7 million on revenue of £481.0 million, compared to £21 million on revenue of £485.1 million for the previous 12 months.

The move, which is expected to improve the commercial operations of DHL Parcel in Britain, is subject to shareholder approval and competition clearance by European Commission. DPDHL said 60 percent of the company's shares had been already pledged in support of the purchase.

UK Mail box vanUK Mail chairman Peter Kane, who founded the company in 1971, said his business would be better position to expand with the benefit of Deutsche Post DHL's greater financial and operational resources. On completion of the share offer, DPDHL said it would retain Kane on a one-year consulting agreement while a new CEO is found.

"The on-going expansion of our parcel network in Europe is driven by increasing demand within our e-commerce customer base for cross-border deliveries," said DPDHL Board member Juergen Gerdes. "With this acquisition, we will further extend our network and have a strong foothold in Europe's three largest e-commerce markets, the UK, Germany and France, which account for over 60 percent of online retail in the continent," he added. Since 2014, DHL Parcel has expanded its cross-border network to cover 18 European countries.

UK Mail began as a taxi business in London and evolved into a national same day courier and overnight parcel service. It now has a network of over 50 sites including an automated national hub in Ryton, Tyne & Wear that can process up to 20,000 parcels per hour. In 2012 the company launched 'ipostparcels', an online next day collection and delivery service for consumers, small businesses and ebay customers.

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