Decision Nº M/03/008 from Competition and Consumer Protection Commission, 2003-05-21

CourtCompetition and Consumer Protection Commission (Ire)
PartiesDHL,Airborne Inc
Decision NumberM/03/008
Date21 May 2003
StatusCleared (Phase 1)
Decision Date21 May 2003
Determination of the Competition Authority
Determination No. M/03/008 of the Competition Authority, dated 21 May 2003 ,
Notification No. M/03/008 – Acquisition of Airborne Inc by DHL Worldwide
Express B.V.
Introduction
1. On 25 April 2003 the Competition Authority, in accordance with Section 18(1)
of the Competition Act, 2002 (“the Act”) was notified, on a mandatory basis, of a
proposal whereby DHL Worldwide Express B.V. (DHL), which is a wholly
owned subsidiary of Deutsche Post AG (DPAG), would acquire Airborne Inc
(Airborne).
2. The transaction only relates to the freight and parcel delivery services of
Airborne. In advance of the consummation of the transaction, Airborne will
separate out its ground* and air transportation assets and liabilities into a separate
entity which will be wholly owned by Airborne’s current shareholders.
The Parties
3. DPAG is a public limited company incorporated under German law. Its major
shareholder is the Federal Republic of Germany. DHL and other affiliates of the
DPAG group including Danzas Ltd are engaged in the provision of international
express delivery of parcels and documents, international express delivery of
freight, international freight forwarding, domestic freight forwarding and/or
international business mail within the State.
4. Airborne is a publicly traded company incorporated under Delaware (USA) law.
Airborne operates as a full service international freight forwarder of air, ocean,
and express shipments worldwide and is a significant competitor in the provision
of overnight parcel carrier services in the United States. Within the State,
Airborne is represented by an independently owned company that purchases
transportation services from Airborne’s worldwide express network and resells
these services to local Irish customers. Within Ireland, Airborne is represented in
the provision of international express delivery of parcels and documents,
international express delivery of freight and international freight forwarding.
Analysis
5. The information provided by parties and discussions with customers indicate that
while the DPAG group has a strong presence in international parcel, document
and freight services in Ireland, Airborne does not currently have a strong
presence in any of these services within the State. Despite its strong presence in
the United States, it’s market share is estimated to be less than 1% in each area of
operation within the State. In addition, there are a number of other significant
competitors within each relevant area of operation including United Parcel
Services and Fedex who will continue to provide significant competition to the
DPAG group in those areas post merger.
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