The UK’s Competition and Markets Authority (CMA) has launched an inquiry into the planned merger between Evri and DHL’s UK eCommerce operations, a move that could create one of the largest parcel delivery networks in the country.
The CMA confirmed it will assess Evri’s proposed acquisition of DHL eCommerce UK, alongside the parent company DHL Group’s intention to secure a significant minority stake in Evri. This investigation will explore whether the merger could lead to a substantial reduction in competition within the UK’s parcel delivery market.
With the UK ranked as the third largest e-commerce market globally, behind only the United States and China, the demand for reliable and efficient parcel delivery services has intensified.
The merger between Evri and DHL’s UK arm could reshape the sector, bringing together more than 30,000 couriers and van drivers and an additional 12,000 staff members. Together, the combined operation is expected to handle over one billion parcels and letters annually.
The CMA has invited comments from industry stakeholders and the public until 25 June, after which the first phase of the investigation will begin. The outcome will determine whether the merger poses risks to market competition and consumer choice.
DHL, headquartered in Germany, ranks as the third largest global delivery company by market value, following UPS and FedEx. The group also owns Deutsche Post, the privatised German postal service.
Evri, formerly known as Hermes, was acquired for £2.7 billion last year by Apollo Global Management, a US-based private equity firm, from Advent International.
The rebranding to Evri occurred in 2022, following its origins as part of the German Otto Group. As part of the proposed deal, DHL Group would obtain a significant minority share in Evri.
Competition in the UK parcel delivery sector remains fierce. Royal Mail was approved for takeover by Czech billionaire Daniel Křetínský’s EP Group in late 2023, aiming to shift focus towards parcel deliveries amid a decline in letter volumes. Meanwhile, Polish parcel locker firm InPost recently agreed to acquire Yodel for £106 million, although the deal is currently paused due to legal proceedings.
Despite growing demand, many parcel companies have faced criticism over customer service. According to polling data from Citizens Advice, Evri and Yodel have frequently been rated lowest among major UK couriers for reliability, service quality and customer trust.
In contrast, Royal Mail and Amazon have consistently received stronger ratings, with DPD falling in the mid-range. DHL was not included in the most recent polling results.
The CMA’s final decision could significantly impact the UK’s parcel delivery landscape, potentially affecting competition, pricing, and consumer service standards across the country.
