 has bought Dicom Canad, the Canadian parcel delivery company in a C$360 million deal. Royal Mail acquired the Didcom){kind=link}
Britain’s Royal Mail (LON: RMG) has bought Dicom Canada, the Canadian parcel delivery company in a C$360 million deal.
Royal Mail acquired the Didcom Canada from the Chicago-based private equity firm Wind Point Partners as the British delivery group hopes to strengthen its international arm.
Royal Mail CEO Rico Back said: “This acquisition is in line with GLS’ strategy to grow through targeted and focused acquisitions to capture higher growth segments outside Europe.”
“With its strong presence in Eastern Canada and primary focus on the business-to-business segment, Dicom Canada’s business model is similar to GLS’ as it provides a high-quality delivery service, based on its focus on reliability and excellent customer satisfaction.”
GLS counted for 33 percent of the Royal Mail’s 2017-18 adjusted operating profit. This was up from 29 percent a year earlier.
No regulatory approvals are needed to for the deal to complete.
The group is looking to appeal Ofcom’s £50 million fine on the group for breaching competition law.
Ofcom fined the group after investigating a complaint by one of Royal Mail’s wholesale customers, Whistl.
The watchdog said the group’s actions were “anti-competitive discrimination against customers, such as Whistl, who sought to deliver bulk mail”.
Royal Mail said in a statement it was “very disappointed” by Ofcom’s decision and “strongly refutes any suggestion that it has acted in breach of the Competition Act, and considers that the decision is without merit and fundamentally flawed”.
Shares in the group edged 0.8 percent higher to 451.5p in Monday’s early trading.