Evri and DHL UK Parcel Arm Merger Under CMA Investigation

The UK’s Competition and Markets Authority (CMA) has launched an investigation into the proposed merger between Evri and DHL’s UK e-commerce division. This deal has the potential to create one of Britain’s largest parcel delivery firms. The CMA is evaluating whether the merger will significantly reduce competition within the delivery industry, a sector critical to the UK economy.

The merger would unite over 30,000 couriers and van drivers, alongside 12,000 additional staff. Collectively, the companies anticipate handling over one billion parcels and one billion letters annually. As part of the arrangement, DHL Group will also gain a minority stake in Evri, a significant move for the German logistics giant.

Online commerce in the UK is the third largest globally, trailing only the US and China. This immense demand has spurred delivery companies to fiercely compete for market share. The proposed merger is part of the ongoing consolidation trend within the industry, as firms seek efficiencies and scalability to meet growing customer expectations.

Evri, which underwent a rebranding from Hermes in 2022, was acquired last year by Apollo Capital Management for £2.7 billion. Meanwhile, DHL, known as the world’s third-largest delivery company by market value, has consistently been at the forefront of the e-commerce delivery sector. These dynamics add to the importance of the CMA’s scrutiny over this merger.

Recent years have seen a steady rise in customer dissatisfaction with delivery firms. Citizens Advice polling has rated Evri and Yodel among the worst performers for delivery problems and customer trust. In contrast, Amazon and Royal Mail have fared better, while DPD, owned by French interests, has remained moderately positioned. DHL has not been included in these surveys but stands to expand its footprint dramatically if the merger proceeds.

The CMA’s first phase of consultation involves a public call for comments, open until 25 June. Interested parties are encouraged to submit their observations, which could help determine whether the deal impacts market competitiveness. Regardless of the outcome, this case underscores the critical intersections of logistics, e-commerce, and economic regulation in a highly dynamic industry.