Brussels, 29 June 2023
The European Commission has approved, under the EU Merger Regulation, the creation of a greenfield joint venture by Saudi Aramco Development Company (‘SADCO’) of Saudi Arabia and Deutsche Post AG, the German parent entity of Deutsche Post DHL Group (‘DPDHL’) of Germany.
The joint venture will provide procurement and logistics services in Saudi Arabia and in the wider Middle East and North Africa region. It will offer inventory, storage, warehouse and transportation management and optimisation services, as well as procurement of inventory items on behalf of customers. SADCO is controlled by Saudi Arabian Oil Company (‘Saudi Aramco’) and is primarily engaged in prospecting, exploring, drilling and extracting hydrocarbon substances, as well as in their processing, manufacturing, refining and marketing. DPDHL is a global logistics group that operates under the brands of Deutsche Post and DHL.
The Commission concluded that the proposed acquisition would raise no competition concerns, given that the joint venture will have no activities within the European Economic Area.
The transaction was examined under the simplified merger review procedure. More information is available on the Commission’s competition website, in the public case register under the case number M.11113.
Source – EU Commission