UPS announces termination of Estafeta deal

Atlanta-based UPS has said it will not move forward with its previously announced plan to buy Mexico City–based express delivery firm Estafeta. The company disclosed the change in plans in a recent filing, marking an abrupt end to a transaction announced in July 2024.

Language from the company filing

In a Form 8-K submitted last week, UPS stated that it had ended the proposed acquisition after certain conditions were not met. The filing provided the company’s brief explanation without additional detail.

“terminated its plans to acquire Estafeta due to the inability of all closing conditions to be satisfied.”

Original timeline and public expectations

When UPS first revealed the agreement in July 2024, it said the transaction was expected to be completed by the end of 2024. Later reporting indicated expectations shifted into the following year.

The Wall Street Journal reported that UPS anticipated the deal would close in the first half of this year, citing an annual filing the company made in February.

Financial terms and company silence on details

UPS did not disclose a purchase price for Estafeta, and its recent filing offered no further specifics about why the closing conditions were unmet. Beyond the brief Form 8-K statement, the company provided no additional information about the termination.

Estafeta’s background and services

Estafeta, based in Mexico City, has operated for more than four decades and offers a range of logistics services. The company’s portfolio includes:

• parcel and courier services
• freight forwarding
• supply chain solutions
• logistics consulting

UPS CEO on the strategic logic when announced

At the time of the July announcement, UPS chief executive Carol Tomé framed the acquisition as a way to capitalize on shifting global trade patterns and Mexico’s growing role in cross-border commerce.

“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.

Comments on expected customer benefits from the combination

Tomé also described the transaction as a significant advantage for UPS customers during the company’s second quarter 2024 earnings call, saying the tie-up would strengthen logistics capabilities for firms relocating manufacturing and distribution closer to the United States.

“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.