UPS says its deal to acquire Estafeta is now off

Following a July 2024 announcement, in which it said it was going to acquire Mexico City-based express delivery company Estafeta, Atlanta-based global freight transportation and logistics services provider UPS said that is no longer the case.

In a Form 8-K statement issued last week, UPS said that it, “terminated its plans to acquire Estafeta due to the inability of all closing conditions to be satisfied.” No additional details were provided by the company.

When the deal was first announced in July 2024, UPS said it was expected to be completed by the end of 2024. A purchase price was not disclosed. But a Wall Street Journal report observed that UPS expected the deal to close in the first half of this year, citing an annual filing made in February.

Established more than 40 years ago, Estafeta provides various services, including: parcel and courier services; freight forwarding; supply chain solutions; and logistics consulting, among others.

“Global supply chains are shifting, Mexico's role in global trade is growing, and Mexican SMB and manufacturing sectors are looking for reliable access to the U.S. market. There is no better way to capitalize on these trends than by combining the size and scale of UPS with Estafeta,” said Carol Tomé, UPS chief executive officer, in a statement, when the deal was first announced. “As the shift to nearshoring continues, our combined business will give customers in Mexico unprecedented access to global markets with seamless service and greater efficiency.” 

And on the company’s second quarter earnings 2024 call, she said this deal was a big win for UPS and its customers.

“By combining Estafeta with the end-to-end services we already have in Mexico and connecting it to the global reach of our integrated network, we will greatly enhance our logistics orchestration capabilities for customers that are shifting manufacturing and distribution closer to the United States,” said Tomé.