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

• Jurisdiction: Ireland
• Parties: DHL,Airborne Inc
• Date: 21 May 2003
• Decision Number: M/03/008
• Status: Cleared (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Date: 21 May 2003

Determination of the Competition Authority

Determination No. M/03/008 of the Competition Authority, dated 21 May 2003 ,

under Section 21 of the Competition Act, 2002

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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