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European Commission clears merger between Swedish and Danish postal operators at Phase I

On 21 April 2009 the European Commission cleared the merger between Posten and Post Danmark - the first merger between European incumbent postal operators. The merger was cleared subject to remedies to resolve a horizontal overlap in the Danish domestic standard business-to-business parcel market - where not only Post Danmark but also Posten (through its DPD franchise) are active. The divestment package was constructed from a combination of physical assets and customer contracts derived from the parties, designed to ensure a replacement for the competition to Post Danmark provided by Posten's DPD service.

The Commission also investigated the possibility of conglomerate effects arising from the combination of Post Danmark's position in bulk mail markets in Denmark and Posten's ownership of a significant printing and enveloping company active in Denmark, Strålfors. However, analysis of these markets indicated that foreclosure could not be expected to result from the proposed transaction. In particular existing competition and further entry into bulk mail markets after liberalisation was not threatened by the combination, and neither was there a risk of exclusionary effects in the printing and enveloping market.

A CRA team including Diana Jackson, Geoff Edwards, Ugur Akgün and Matt Tavantzis advised the parties throughout the pre-notification period and Commission investigation.

See Commission Press Release for further details.

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