Background on COFECE and the Mexican Courier Market
The Comisión Federal de Competencia Económica (COFECE) has given its approval for UPS to acquire Mexican company Estafeta, aiming to become “a leading international provider of high-quality courier and logistics services worldwide.”
In Mexico, the courier and parcel delivery subsector has shown promising growth. According to data from the National Institute of Statistics and Geography (INEGI), this sector expanded by 3% in real terms during 2024, outpacing the country’s GDP growth of 1.5%. The market value for this subsector reached approximately 47,175 million pesos.
Details of the UPS-Estafeta Acquisition
Although specifics and the acquisition amount remain confidential, it is expected that all necessary procedures will be completed by the end of the first half of 2025 before relevant authorities in Mexico and the United States.
On May 8, COFECE’s Plenum resolved to authorize the economic agents’ concentration: UPS International, UPS Latin America, Estafeta, and Tratasa (a subsidiary of Estafeta).
On July 22, 2024, UPS and Estafeta announced their purchase agreement publicly, intending to offer “powerful global logistics solutions and trade opportunities for customers both within and outside Mexico.”
UPS’s Performance and Future Plans
According to UPS’s annual report 2024, CEO Carol B. Tomé highlighted that the year was crucial for the organization, closing with positive momentum after registering two consecutive quarters of growth in volume, revenue, and operating profits.
For the current year, UPS aims to sustain this growth pace. The acquisition of Estafeta is expected to close in the first half of 2025, pending regulatory reviews and approvals.
Context of the Acquisition
In 2020, UPS and Estafeta established a commercial collaboration agreement. As context for the acquisition, recent information from UPS emphasizes that logistics has become a strategic component for Mexican businesses looking to expand globally.
- Key Requirements for Global Expansion: Designing smart routes, efficiently complying with customs regulations, and ensuring shipment visibility are crucial for businesses expanding internationally.
- Importance of a Suitable Partner: With over 117 years of experience and presence in more than 200 countries, UPS is well-positioned to support companies in their international growth.
Estafeta’s Message to Clients
Estafeta encourages its clients: “If you plan to take your business to the next level in 2025, we are the right partners. We are logistics that solve.”
