Deutsche Post has agreed to buy UK Mail for £242.7 million as the German postal company continues its European expansion.
The move will see it compete with Royal Mail for parcel deliveries in the UK.
Technical problems at one of UK Mail’s new sorting offices last year meant that bulky parcels had to be handled manually.
However, Deutsche Post has said the acquisition will allow it to bring its expertise in e-commerce and parcel delivery together with UK Mail’s existing customer base and network.
Juergen Gerdes, Deutsche Post DHL group board member, said: “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 per cent of online retail in the continent.?”
Founded in 1971, UK Mail currently operates out of more than 50 sites across the UK and serves more than 25,000 customers. Its automated national hub in Ryton can process up to 20,000 parcels per hour.