Deutsche Post - Acquisition of ASG

United Kingdom
31/08/1999
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The European Commission has indicated that it will not oppose the acquisition of ASG AB, Stockholm, by Deutsche Post AG, as the transaction will, in its view, not create a dominant position. ASG is one of the large Scandinavian transport enterprises active in the area of national and international freight, parcel services and logistics. Deutsche Post provides postal, parcel and freight services. So far Deutsche Post has been active on the Scandinavian markets only to a limited extent. With the activities of Nedlloyd ETD and Danzas, Deutsche Post now has one network in the core markets of continental Europe and Scandinavia at its disposal.

According to the Commission, the concentrations will create only negligible overlaps on the respective home markets of the two companies. The merged entity will however have a stronger position in the area of cross-border freight between Scandinavia and Germany. No competition concerns were raised, owing to the presence of a number of large competitors (BTL Schenker, DFDS and Dan Transport, the latter two companies having recently announced their intention to combine their activities), and of smaller competitors, who transport freight between their country and Germany

As in previous cases, competitors have claimed that Deutsche Post has financed its acquisitions with illegal State aids. These concerns are now being dealt with by the Commission under EC State aids rules (Case No IV/M.1549, decision of 8.7.99, IP/99/485)

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