New Zealand Post (NZP) has agreed to purchase from DHL its 50% share of Express Couriers Limited (ECL) and of Parcel Direct Group Pty Limited (PDG), which owns Couriers Please Pty Ltd (CPPL) in Australia. The purchase will make both ECL and PDG wholly-owned subsidiaries of NZP.

ECL was formed in 2004 through the amalgamation of New Zealand Post's courier and freight operations, and was then made part of the joint venture between NZP and DHL in early 2005. The company offers express delivery services in New Zealand and internationally via the DHL Express network.

In New Zealand, ECL operates the market leading brands of CourierPost, Pace, Contract Logistics and Roadstar.

CPPL was acquired by NZP in 2000 and included in the PDG joint venture with DHL Express in 2008.

The total value of both transactions prior to any post completion adjustments is approximately NZD108 million. The transaction is expected to complete on 29 June 2012.

As part of the sale process, NZP and DHL Express have put in place strategic commercial agreements which will see the two companies support each other's express delivery operations at a global level, through DHL Express; and domestically in New Zealand, through ECL; and in Australia via CPPL.

As a result of this transaction NZP will realise a one-off non-cash gain which will mean that its reported result for the year ending 30 June 2012 will be higher than planned. (Reuters)