CMA clears the way for DX Scottish deal

The Competition and Markets Authority has cleared the way for the acquisition by DX of the trade and assets of The Legal Post (Scotland) Limited and First Post Limited.

It has closed its investigation, deciding that that no further action will be taken.

The decision enables DX to push ahead with the integration of the two businesses and this is expected to be completed by the end of 2016.

The CMA decision had been expected as it revoked its initial enforcement order on 16 September enabling DX to continue work on the £3.25 million deal, which was first mooted in May.

Legal Post provides a document exchange and postal service in Scotland, while First Post operates a Downstream Access mail service in Scotland as an alternative to Royal Mail’s first and second-class services.

DX plans to combine Legal Post and First Post with its existing DX Exchange operations in Scotland to offer an enhanced service to both sets of customers.

Petar Cvetkovic, chief executive officer of DX, said in May: “These businesses are wholly complementary to DX’s operations in Scotland and they will be stronger together for both sets of customers, increasing the number of members in a single Scottish exchange network and providing Legal Post’s members with access to DX’s existing members in the UK and Ireland.

“The enlarged operation in Scotland will enable significant efficiencies that will enhance the economic life of a bespoke mail service that is highly valued by its professional services members for its reliable early delivery and late collection times, while also offering a cost effective solution.”