CVC creates Nordic postal operator

The Swedish Ministry of Enterprise, Energy & Communications, the Danish Ministry of Transport and CVC Capital Partners have signed a letter of intent to merge Swedish Posten with Post Danmark.

In July 2005, CVC bought a 22% stake in Post Danmark from the Danish state.

The agreement envisages the merger of Posten and Post Danmark through the creation of a new SKr45bn (€4.77bn) parent company (as measured by revenues), with 50,000 employees.

The new company will be 60%-owned by the Swedish state and Posten’s employees, with the remaining 40% controlled by the Danish state, CVC and Post Danmark’s employees.

Sweden’s voting rights will, however, be equal to those of the Danish state together with CVC.

“The rationale for the merger is to create a strong and more competitive new company able to meet the increasing challenges in the postal market,” CVC said in a statement.

Fritz Schur, currently Post Danmark’s chairman, is set to become the chairman of the new company, while Erik Olsson, who is Posten’s chief executive, will take on that role in the newly merged Nordic postal operator, which will be headquartered in Stockholm, Sweden.

As part of the agreement, Posten will distribute an extraordinary dividend of SKr1.4bn (€149m) to the Swedish state.

The traditional postal business in each respective country will continue to be operated as national entities adhering to national regulations and using the same brands as today (Posten and Post Danmark).

The logistics businesses will be joined under one division and under an own brand. The information logistics and graphical business will be joined under the Strålfors brand in the new company.

Beyond the four main businesses, the new company will comprise group functions and one unit for shared services. Post Danmark’s 25% ownership in De Post-La Poste (Belgium) will also be part of the new company.

“The postal and logistics markets are changing rapidly all across the world. When national postal markets are deregulated, competition increases within the most attractive segments and sub-markets,” CVC said in a statement.

The completion of the signed letter of intent is subject to required approvals by the parliaments in Sweden and Denmark respectively, signing of definitive agreements and completion of due diligence.

SEB Enskilda acted as Posten’s financial adviser, Nordea Corporate Finance advised Post Danmark, and Goldman Sachs represented the Swedish government.