Belgian postal carrier turns to Royal Mail

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According to reports, Belgian postal service De Post-La Poste, which is minority owned by UK-based buyout house CVC Capital Partners, is likely to throw its hat in the ring to acquire a 30% stake in UK postal operator Royal Mail. The controversial auction, which still faces stiff political opposition, is thought to be likely to attract interest from national carriers across Europe.

It is not yet known how any deal would be structured, with a policy document released by the Department for Business suggesting that a range of options, including an equity swap, a direct equity investment, or a partial merger, remained open.

CVC is currently in the process of upping its stake in De Post-La Poste to 49.9% through the acquisition of Danish operator Post Danmark's stake in the business (February 2009, page 25). The two firms took a joint interest in 2005, following CVC's acquisition of a minority holding in the Danish carrier earlier in the year.

CVC was to participate in the merger of Post Danmark with Swedish postal service Posten AB, which completed last month, but it pulled out of the deal as it reached its final stages, citing the fact that minority interests do not fit with its investment strategy.