Deutsche Post does not rule out buys; could target start-ups
Deutsche Post, the German postal service group, will consider acquisitions, Manager Magazin reported quoting Frank Appel, the chairman of Deutsche Post. During a lengthy interview, the magazine asked Appel whether he is reluctant to push for large takeovers because of his experiences during the group’s foray into the US market.
Appel explained in the article that Deutsche Post has learned its lessons from the US experience. He said that one needs to question what added value a takeover target has for existing customers, and what the deal will cost if it, against all odds, turns out to be a failure. Appel acknowledged that Deutsche Post did not consider these issues enough before moving into the US market, but now discusses these aspects at length when pondering new deals.
Manager Magazine suggested that this means Deutsche Post values an original business idea of a potential target more than its size, and asked Appel whether start-ups are an interesting option. The magazine highlighted that a number of US start-ups are making great strides with so-called “same-day-delivery” concepts. Appel made clear in the article that he is not willing to discuss potential takeover targets, but acknowledged that Deutsche Post could be interested in start-ups that bring a new business perspective to the table.
Deutsche Post has a market cap of EUR 31.318bn.
Source Manager Magazin