Saturday 1st Oct 2016 - Logistics Manager

DX pushes ahead with Scottish acquisitions

DX is pushing ahead with its acquisition of two Scottish operators after the Competition and Markets Authority revoked an enforcement order.

The CMA decided in July to review DX’s plan to acquire the two businesses, The Legal Post (Scotland) Limited and First Post Limited, and served an initial enforcement order.

Legal Post provides a document exchange and postal service in Scotland, while First Post operates a Downstream Access mail service in Scotland as an alternative to Royal Mail’s first and second-class services.

The £3.5m deal had been expected to be completed at the end of May. DX plans to combine Legal Post and First Post with its existing DX Exchange operations in Scotland.

The authority is continuing to conduct its assessment and has not yet taken a decision as to whether the transaction has or may be expected to result in a substantial lessening of competition.

But it said: “Based on the evidence it has received in its assessment of the Transaction to date, the CMA considers that it is appropriate to revoke the Initial Enforcement Order.”

DX said in a statement that it would now “continue with the combination of the acquired trade and assets with the Company’s existing operations in Scotland so as to deliver the customer service enhancements and anticipated cost savings as planned. DX will continue to provide full assistance to the CMA”.