The final factor for me is the old 'sum of the parts' argument: the whole is greater than the sum. We recently announced a joint venture partnership, in the international cross-border letters market, between TNT Post Group (the Dutch Post Office and a key competitor) and ourselves. This is a market where economies of scale and scope apply. Whilst both of us have been successful in individual markets in North America, Europe and the Pacific rim, this had only resulted in each of us having an average of 5-6% market share against the incumbent, usually the domestic postal administration.
The partnership has created the world's largest cross-border mailing organisation with an average of 10-12% market share in all of the key markets. This means overnight that both organisations have a credible number-two player in the key markets, which can benefit from the economies of scale and scope. This is the kind of benefit that joining together both organisations brings.
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