Post Danmark and the Swedish postal office authorities Posten have signed a letter of intent for the merger of the two postal companies. The new company is to go public in a few years.

The Danish postal company Post Danmark together with its Swedish counterpart Posten and the owners – the Danish Ministry of Transport, the Swedish Näringsdepartement and CVC Capital Partners –announced their merger at a press meeting.

The parties agree to try going public with the new company in Stockholm and Copenhagen in three-five years, writes Ritzau news agency.

The idea of a merger originated at the executive levels in Post Danmark and Posten Sweden and the Danish government agrees that it is an interesting and promising plan, says the Danish Minister of Transport Carina Christensen to Ritzau.

It is important that the two postal companies are well-equipped to meet the challenges on the future postal market. A merger will contribute to the fact that Post Danmark A/S also in the future will deliver high quality postal services and at competitive prices to the entire Denmark, says Carina Christensen.

A few years ago Post Danmark together with its co-owner the capital fund CVC bought into the Belgium postal office authorities La Poste. This has proved a golden egg to Post Danmark and CVC, which already recovered one third of their investment of approximately EUR 300 million.

Last year the two companies had a turnover of altogether approximately EUR 4.8 billion and delivered an operating result of EUR 335 million not including the earnings from Post Danmark’s investments in the Belgium De Post-La Poste.