A proposed merger of parcel giant Evri with the UK ecommerce arm of rival DHL has come under scrutiny by the Competition and Markets Authority (CMA).
The deal, announced in mid-May, is set to create one of the biggest parcel couriers in the country, with the combined group capable of delivering more than a billion parcels and a billion letters each year. The merged business would have a workforce of in excess of 30,000 couriers and van drivers, 12,000 other staff and a fleet of 8,000 vehicles.
As part of the merger, DHL will also acquire a minority stake in Evri.
However, the CMA is set to look at whether the deal would represent a “substantial lessening of competition” in the UK logistics market.
The watchdog has invited interested parties to come forward with their views before 25 June, in a preliminary process before any formal investigation is opened.
Evri CEO Martijn de Lange said when the deal was announced that it would create “the pre-eminent parcel delivery group in the UK”.
“Over the last decade Evri has grown ten-fold in size and this transaction will further expand our access into the European and global ecommerce markets,” he said.
The post-merger Evri would be able to use DHL ecommerce’s cross-border shipping expertise and nearly 150,000 out-of-home access points worldwide. Evri would also have the UK’s largest out-of-home network, with 15,000 access points nationally.
The group, which turned over £1.7bn in 2023/2024, will also offer business mailing for the first time under DHL’s UK Mail brand, giving Royal Mail a new rival.
Evri, previously known as Hermes, was acquired late last year by US private equity firm Apollo for £2.7bn, and immediately announced plans for significant expansion, with 9,000 planned new hires and a goal to deliver four million parcels each day.
No comments yet