DHL Group acquires Turkish parcel service provider MNG Kargo

PRESS RELEASE

• Strategic acquisition complements DHL Group’s European eCommerce parcel network
• MNG Kargo delivers parcels to 600,000 addresses every day, making it one of the leading parcel service providers in Turkey
• The Turkish parcel market expects double-digit growth in the coming years – driven in part by a young, dynamic population with a high affinity for digitization and online shopping
• E-commerce is one of the focus areas of DHL Group’s Strategy 2025 to strengthen its profitable core business and secure long-term growth

Bonn/Istanbul, July 25, 2023: DHL Group has signed an agreement to acquire the Turkish parcel service provider MNG Kargo Yurtiçi ve Yurtdışı Taşımacılık A.Ş. and its subsidiaries (MNG Kargo). MNG Kargo is one of the leading parcel service providers in Turkey, whose parcel and e-commerce market is growing rapidly. With this acquisition, DHL Group secures a leading position in the rapidly developing domestic parcel market and creates additional synergies for the company. Customers will thus benefit not only from unique transport and logistics offerings within Turkey, but also from cross-border solutions thanks to the cooperation of the DHL divisions already represented in the country.

“In addition to sustainability, globalization and digitalization, we have identified e-commerce as a megatrend in logistics and have therefore made it a focus of our Strategy 2025 over the past few years,” said Tobias Meyer, CEO of DHL Group. “E-commerce remains one of the biggest growth drivers for logistics and parcel volumes in particular. That’s why we’re continuously working to increase our footprint in this area – whether through organic or inorganic growth. MNG Kargo complements our business portfolio and will help to further strengthen our position in this sector.”

For DHL eCommerce, the newly acquired parcel network, which includes 27 sorting centers for mid-mile transportation and over 800 centers for last-mile delivery, is an ideal complement to the European parcel network and will therefore become part of this division. Mainly driven by a young, dynamic population with a high affinity for digital communication, the e-commerce market in Turkey is expected to grow at double-digit rates in the coming years – significantly higher than the EU markets. Thanks to DHL eCommerce’s network and digital expertise, combined with MNG Cargo’s local presence, DHL Group is ideally positioned to benefit from the enormous growth potential of the Turkish market.

“At DHL eCommerce, our goal is to provide our customers with reliable, affordable and sustainable e-commerce transportation services,” said Pablo Ciano, CEO of DHL eCommerce. “The backbone for this is our extensive network, which we operate either ourselves or in cooperation with partners, as well as our digital expertise and performance. The acquisition of MNG Kargo will strengthen our network and help us connect our customers to the Turkish market and vice versa.”

Among other things, Turkey benefits from the efforts of various producers to create more resilient supply chains and already has a strong manufacturing base, such as in the textile industry, which is benefited by e-commerce. DHL Express opened a new, state-of-the-art hub at Istanbul Airport in 2021, and just recently, DHL Global Forwarding announced that it will intensify its cooperation with Turkish Cargo. Although MNG Kargo will become part of DHL eCommerce, DHL Group’s other divisions and customers will also benefit from the synergies of the newly acquired company. In return, MNG Kargo benefits from DHL Group’s international logistics expertise and extensive global network.

The transaction is subject to approval by the Turkish Competition Authority and the Turkish Information and Communication Technologies Authority.