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2015-03-02

Toll Express

Post should focus on finding new parcels business as it faces competition from Japan Post's acquisition of Toll

Japan Post’s recent announcement that it wants to acquire Toll Holdings is a stark comparison to Post’s behaviour of cannibalizing its own business. Instead of making excuses for poor first-half profit results and blaming Postal regulation, Post should be focused on finding new parcels business and other revenue sources.

The proposed acquisition of Toll by Japan Post will put pressure on Post’s B2C parcels market, bringing together Toll’s end-to-end delivery network, its network of news agencies with parcel shop services, its Australian and Asian parcels networks and Japan Post’s own network.

Toll - a large Australian logistics and delivery company has traditionally moved consumer goods between stores and warehouse by road and air. But this traditional business model has been challenged by the emergence of online shopping and Post’s dominance of the Australian market for online deliveries.

Japan Post’s $5bn USD offer for Melbourne-based Toll Group could be confirmed by early June.

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