| DHL looks for 'small' takeovers to grow in Asia |
| Last Updated(Beijing Time):2006-11-18 14:26 |
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Deutsche Post AG's express mail unit DHL Express is in talks for acquisitions in China and other countries in Asia to boost its business in the region, the unit's Asia Pacific head said yesterday.
DHL is looking for "small" acquisitions or purchases of less than US$100 million, said Scott Price, the unit's Asia Pacific chief executive officer, in an interview.
DHL is tapping into a region whose growth is being spurred by China's expanding economy and an increase in exports and domestic consumption. The World Bank this week raised its 2006 growth forecast for East Asia, excluding Japan and the Indian subcontinent, to 7.8 percent from a 6.6 percent March estimate, Bloomberg News said yesterday.
"We will continue to look" for acquisitions, Price said in Hanoi, Vietnam. "We are in a few interesting discussions in China. We think it's a market for the future," he said, without elaborating. The company's sales in China have risen by an average 35 percent to 45 percent annually in the past five years.
DHL will also decide on the location of its second key hub in Asia in the next three to four months, Price said. It's choosing between Shanghai and Incheon in South Korea, after evaluating 22 options, to tap increasing business north of the region. Hong Kong is DHL's main hub in Asia.
The hub will be set up by the end of 2008, Price said. DHL is looking at costs, regulatory environment and taxes in picking the site for its second hub.
"Incheon versus Shanghai, they balance out pretty close," he said. "It's going to be a difficult choice," said Price, who is attending the Asia Pacific Economic Cooperation forum in Vietnam.
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