Menzies merger firm DX avoids ‘full investigation’

Courier firm DX Group, currently in the process of merging with the distribution business of Edinburgh-based John Menzies, said on Friday that the City of London Police “will not be proceeding to a full investigation” of DX.

DX said in a statement: “Further to DX’s announcement on 9 June, the board of DX announces that it has been notified by the City of London Police Economic Crime Directorate that, after careful consideration of allegations made, the City of London Police will not be proceeding to a full investigation.

“The company co-operated with the City of London Police’s preliminary investigation, which centred on the DX Exchange operations, and in addition has reviewed and made changes to internal business processes in this unit, which will be kept under review.”

Menzies said in a statement: “The board of John Menzies plc notes the announcement made by DX (Group) plc earlier today that the City of London Police will not be proceeding to a full investigation.

“The board of John Menzies continues to believe that the combination of DX and John Menzies’ distribution division has strong strategic logic for all stakeholders and that the transaction represents an opportunity to deliver significant value.

“Discussions between John Menzies and DX are ongoing and a further announcement will be made as and when appropriate.

“There can be no certainty that a transaction will occur.”

Menzies has long been under pressure from some of its shareholders to separate its airport handling business from its news distribution businesses.