![[ image: width=150]](/olmedia/385000/images/_388997_guipuz150.jpg)
The UK Post Office is keen to become a major player, and the proposals announced on Thursday by the government should enable it to start flexing some commercial muscle.
But it is already late into the game, as some of its Continental rivals have already built up big power bases as providers of postal services across Europe.
In fact, as the Post Office was weighing up the consequences of its new role, the German service, Deutsche Post, was announcing yet another acquisition.
It has taken a 49% stake in Guipuzcoana, the Spanish and Portuguese parcel delivery company. Deutsche Post has now made nearly two dozen purchases in the past couple of years.
So what is causing this shift from cosy national mail service to acquisitive European conglomerate?
Like so many other industries, Europe's postal providers have realised they must adapt to survive.
Some have been quicker than others, notably Deutsche Post. It has a 25% stake in DHL Worldwide Express stake, and is now Europe's biggest parcel service.
Moving into e-commerce
It also has interests in shipping, warehousing and call centres, and has just launched an e-commerce website encouraging electronic traders to use Deutsche Post to deliver their goods.
![[ image: width=150]](/olmedia/385000/images/_388997_parcelforce150.jpg)
The Dutch post office has bought the TNT parcel business. It lost out to its UK rival this year in the contest to buy German Parcel.
That £300m purchase marked the Post Office's first foray into the international arena, but also raised some issues which look likely to recur.
There was concern that the Post Office initially refused to give details of the deal, including how it was funded.
That may change if it becomes a public limited company under government proposals, but the question of using the benefits of state monopoly to make fund private purchases remain.
![[ image: width=150]](/olmedia/385000/images/_388997_ups150.jpg)
Deutsche Post has been accused of funding its purchases by having some of the world's highest postal rates. UPS has lodged a complaint with the European Commission.
Competition authorities are keeping a close eye on how the market develops, but that has not stopped the Post Office drawing up a £1.5bn shopping list with eight targets on it.
But the most important thing is guessing how we will all be communicating in the future. A survey suggests that the recent growth in letter volume is starting to slow.
Maintaining core business
And the Swedish post office is so convinced that everyone will soon communicate electronically, that it has given everyone over the age of six free e-mail addresses.
Also, for carriers like the French and British post offices, which are new entrants to the international field, there is the challenge of expanding while maintaining their core business.
As one observer noted, it is little use a post office ruling the world if customers in its home country are neglected.
And there are sure to be hungry rivals ready to pounce on any gaps that appear in this increasingly competitive market.
Union fears over Post Office shake-up
(08 Jul 99 | UK Politics)
Global ambitions for Post Office
(05 Apr 99 | The Company File)
The BBC is not responsible for the content of external internet sites.
Microsoft trial mediator welcomed
Vodafone takeover battle heats up
Christmas turkey strike vote
NatWest bid timetable frozen
France faces EU action over electricity
Pace enters US cable heartland
Mannesmann fights back
Storehouse splits up Mothercare and Bhs
The rapid rise of Vodafone
The hidden shopping bills
Europe's top net stock
Safeway faces cash demand probe
Mitchell intervenes to help shipyard
New factory creates 500 jobs
Drugs company announces 300 jobs
BT speeds internet access
ICL creates 1,000 UK jobs
National Power splits in two
NTT to slash workforce
Scoot links up with Vivendi
New freedom for Post Office
Insolvent firms to get breathing space
Airtours profits jump 12%
Freeserve shares surge
LVMH buys UK auction house
Rover - a car firm's troubles