UPS terminates agreement with Estafeta
In a surprising turn of events, UPS has announced the termination of its plans to acquire Mexican express delivery and logistics company Estafeta. The deal, which was announced in July 2024, aimed to provide comprehensive logistics solutions in Mexico and take advantage of the country's growing role in cross-border trade.
UPS CEO Carol Tomé mentioned that efforts to acquire Estafeta were taking longer than expected to clear regulatory and pre-closing conditions. The specific conditions required by UPS and Estafeta for the completion of their merger have not been clarified in the available search results. The companies were unable to satisfy all closing conditions, leading to the termination of the deal.
Despite this setback, UPS remains committed to growth in Mexico. The company has conducted over 600 supply chain mapping assessments this year to help customers evaluate reshoring options. UPS remains dedicated to delivering the reliable service its customers expect.
The termination of the deal comes as a disappointment to Mexican shippers, who would have gained better access to global markets through the UPS-Estafeta partnership. UPS customers would have benefited from more efficient access to Mexico as well. The partnership would have offered customers in Mexico small package, healthcare logistics, and contract logistics services.
Estabeta, based in Mexico City, offers services such as truckload, less-than-truckload, freight forwarding, distribution, customs brokerage, and express parcel delivery. The exact reasons for the deal's termination were not specified in the provided text. The announcement was made in a response to an email inquiry, and the turn of events was disclosed in a filing with the Securities and Exchange Commission by UPS.
UPS remains optimistic about its future in Mexico. The company continues to explore opportunities for growth and improvement in the region. As the global logistics landscape evolves, UPS remains committed to adapting and providing the best possible services to its customers.
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