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DX Group, John Menzies end merger talks

London - British mail delivery company DX Group said on Monday talks for a potential merger with John Menzies Plc’s distribution unit had been terminated due to unsuitable terms.

London - British mail delivery company DX Group said on Monday talks for a potential merger with John Menzies Plc’s distribution unit had been terminated due to unsuitable terms. The company was preparing to buy Menzies’ distribution arm in a deal aimed at bolstering DX after a profit warning in February that cited a challenging courier market and margin pressure in its freight business. DX said in July it would split its business into DX Express and DX Freight and the reorganisation would give greater flexibility in managing costs. DX is one of several big operators in the crowded parcels market, where DHL-owner Deutsche Post has bulked up by buying UK Mail, and Amazon has started its own deliveries.
DX said on Monday it would make a number of changes to the board and was in advanced talks with individuals for potential new appointments, including proposed chairman designate Ron Series, who recently served as the chief restructuring adviser at Lonmin Plc.

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