FedEx Corp is reportedly in talks to buy all or part of Deutsche Post AG's DHL delivery business in the US, a deal that would help it challenge larger rival United Parcel Service Inc (UPS).
Seeking to cut losses in the hyper-competitive domestic fast-delivery business, Deutsche Post may move to trim its DHL business in the US without abandoning it completely, according to published reports on Friday.
Deutsche Post chief financial officer John Allan was quoted by the Frankfurter Allgemeine Zeitung as saying that a total sale of DHL in the US is "very, very unlikely."
A deal could be in the works by May at the latest, according to the report.
A FedEx spokesperson declined comment.
"We don't comment on corporate development," FedEx spokesman Jess Bunn said.
A DHL spokesman denied any plans by parent company Deutsche Post to sell its US delivery service.
"There is no question about our exiting the US business, a withdrawal can be completely ruled out," DHL spokesman Jonathan Baker told the Memphis Business Journal.
Shares of FedEx rose US$1.45, or 1.64 percent, to US$89.96, bucking the move down in the overall market.
UPS fell US$1.25, or 1.76 percent, to US$69.97.
Analyst Rick Paterson of UBS said FedEx does not really need DHL's US delivery assets, and that it simply has to wait for it to lose ground over time to eventually win over its domestic market share.
FedEx, however, would benefit if DHL allowed it to become the US distributor of its hefty package traffic originating in Europe and Asia, he said.
FedEx would have the edge in any talks because Deutsche Post is under pressure from shareholders to produce some kind of value for DHL.
A deal between DHL and UPS is less likely because of the "more contentious relationship" between the two giants overseas, Paterson said.
Taiwan will prioritize the development of silicon photonics by taking advantage of its strength in the semiconductor industry to build another shield to protect the local economy, National Development Council (NDC) Minister Paul Liu (劉鏡清) said yesterday. Speaking at a meeting of the legislature’s Economics Committee, Liu said Taiwan already has the artificial intelligence (AI) industry as a shield, after the semiconductor industry, to safeguard the country, and is looking at new unique fields to build more economic shields. While Taiwan will further strengthen its existing shields, over the longer term, the country is determined to focus on such potential segments as
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
RSS