Expansion in emerging markets is “our number one priority” according to David Abney, the former Chief Operating Officer (COO) and now the incoming CEO for United Parcel Service, Inc (NYSE: UPS). He has told the media:
“We’re going to continue to focus on making those (emerging market) investments. Growing internationally and diversifying our customer base are extremely important to us.”
Trade among emerging markets is growing rapidly and UPS expects that eventually 95% of consumers will be outside the United States. But even as UPS builds international capacity, especially in Asia and Latin America, the company’s international package revenue has remained steady at just over $12 billion since 2011.
It should also be mentioned that the outgoing CEO Scott Davis had sought a significant international expansion in 2012 through a €5.2 billion ($6.76 billion) takeover of the Netherlands’ TNT Express – a deal the European Commission subsequently blocked. The TNT deal would have increased UPS’s reach not only in Europe but also in China and Brazil, two countries where UPS is keen to expand. However, Abney did add that future acquisitions might not be on the same scale as the attempted TNT takeover.
To read the whole article, New UPS CEO looks overseas for growth and New UPS CEO plans expansion in emerging markets, services, go to the website of the Financial Times and Reuters, respectively.
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