A £40 MILLION merger between John Menzies’s distribution arm and parcel delivery and logistics company DX Group has been scrapped. The move follows a profit warning by DX Group earlier this year amid “challenging” trading conditions, and a management overhaul.
Talks about DX acquiring Menzies’s distribution unit for £40 million were announced in June. But the Edinburgh-headquartered company said in a stock market announcement that, following additional due diligence on DX Group after a July trading update, it “became apparent” that any deal would require revised terms.
For that reason, despite the “strong strategic and commercial benefits” a tie-up, the deal has been terminated.
John Menzies said in a statement: “The John Menzies board does not believe it is currently possible to agree a revised set of terms with DX for the combination which would be in the interests of John Menzies shareholders.”
Menzies said it continues to believe there is merit in separating its aviation and distribution divisions at the “appropriate time”.
City of London Police dropped plans for a probe into DX Group just over a month ago.
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