M&A in the Italian transportation market

M&A in the Italian transportation and forwarding market will continue to occur. If one looks at the changing patterns in the fashion industry which is very important for Italy it is clear that the transportation and forwarding market will adapt to this. M&A is an alternative for larger buyers to improve its position an create synergies. In 2011 the Italian road & rail transportation market grew by 6.5% to reach a value of $60 billion. The industry is forecast to have a value of $85 billion in 2016, an increase of 42.3% since 2011. Rail freight is a small segment accounting for 1.2% of the market value which is lead by road freight accounting for 98.8%. Italy accounts for 12.7% of the European road & rail transportation market value. France is leader of the European market with 16.1%, Germany is second with 15%.

M&A in the logistics area of the pharma and cosmetics market in Italy

At the end of last year UPS (United Parcel Service Inc), an US-based package delivery company, has entered into an agreement to acquire Pieffe Group, an Italy-based pharma logistics company. The acquisition allows United Parcel Service to support its ongoing global healthcare strategy. The cosmetics as well as the fashion industry represent large markets in Italy with relevant logistics activity.

Pieffe Group is engaged in stocking and distribution of pharmaceutical and cosmetic products. United Parcel Service (UPS) is one of the largest package delivery companies, a leader in the US less-than-truckload industry, and a global leader in supply chain management operations.

How do you see buying and selling in the global forwarding market develop?

Which forwarding buyers do you feel will do further acquisitions in the future?

M&A investing in Italy

Italy is the 10th largest economy in the world based on purchasing power parity. The fiscal situation is fragile and political circumstances could damage reforms and could lead to further instability. An €40bn ($56.2bn) austerity program should tackle the weak financial position. According to Transparency International’s Corruption Perception Index 2010, Italy is ranked 67th among 178 countries. The foreign investment laws of Italy are similar to those of other EU countries, structural rigidities and the dominant public sector have an adverse impact. Tax rates in Italy remain relatively high. The effective tax rate is 31.4%, basic rate of corporate tax in Italy is 27.5% and local tax is imposed at a rate of 3.9%. The EU average in 2010 was 23.2%.