Sweden’s state run postal service Posten is to merge with Denmark’s postal service.
The Swedish Enterprise Ministry and Denmark’s Transport Ministry have along with private equity and investment advisory firm CVC Capital Partners signed a memorandum of understanding to merge the two countries main postal services.
The Swedish state will be the majority stakeholder in the company, owning 60 percent of the shares.
The merged company , which will have its’ headquarters in Stockholm, will have an estimated annual turnover of around 45 billion kronor, with 50,000 employees.
The merger will create synergies within the IT, administration and shared services that should save the new company an estimated 1.0 billion kronor.
”We operate in a market exposed to rapid change. The competition from international players increases when postal markets are deregulated and electronic communication challenges traditional mail operations,” said Posten chief executive Erik Olsson, who was set to take the helm of the new company.
”A combined company with strongly rooted national operations creates the foundation for increased competitive strength across all business divisions,” he added in the Posten statement.
Fritz H. Schur, the current chairman of Post Danmark, was to be appointed chairman of the new group.
The new company will comprise two national entities maintaining the brand names of Posten and Post Danmark, which would adhere to national regulations, Posten said.
Logistics would be handled by a joint entity with its own, as yet undisclosed brand name, while IT, logistics and graphics would be handled jointly under the Staalfors brand name.
At a news conference at lunchtime today, Sweden’s Minister for Enterprise and Energy Maud Olofsson said the aim of the merger was to meet the markets increasing challenges, creating a strong nordic base.
The postal members union Seko said the merger would be good for its members.