UPS said Thursday it has ended plans to acquire Mexican express delivery and logistics company Estafeta because the companies were unable to satisfy all closing conditions.
The Atlanta-based parcel giant disclosed the turn of events in a filing with the Securities and Exchange Commission.
“We remain committed to growth in Mexico and delivering the reliable service our customers expect,” a UPS spokesperson said in an email response.
UPS announced the deal in July 2024 and said it expected to close on it by the end of the year.
CEO Carol Tomé told analysts during the company’s July 29 earnings call that efforts to acquire Estafeta were taking longer than expected to clear regulatory and pre-closing conditions.
UPS had said the deal allowed it to take advantage of Mexico’s growing role in cross-border trade as manufacturers relocate from China to be closer to the U.S. market and to minimize geopolitical and tariff impacts associated with U.S.-China tensions.
So far this year, UPS has conducted more than 600 supply chain mapping assessments to help customers evaluate reshoring options, the CEO said.
Mexico City-based Estafeta provides truckload, less-than-truckload, freight forwarding, distribution and customs brokerage services, in addition to express parcel delivery.
The companies said the combination would help customers in Mexico with small package, healthcare logistics and contract logistics services. Mexican shippers would gain better access to global markets, while UPS customers would have more efficient access to Mexico.
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