UPS mentioned Thursday it has ended plans to accumulate Mexican categorical supply and logistics firm Estafeta as a result of the businesses had been unable to fulfill all closing situations.
The Atlanta-based parcel large disclosed the flip of occasions in a submitting with the Securities and Trade Fee.
“We stay dedicated to progress in Mexico and delivering the dependable service our clients count on,” a UPS spokesperson mentioned in an e mail response.
UPS introduced the deal in July 2024 and mentioned it anticipated to shut on it by the top of the yr.
CEO Carol Tomé informed analysts through the firm’s July 29 earnings name that efforts to accumulate Estafeta had been taking longer than anticipated to clear regulatory and pre-closing situations.
UPS had mentioned the deal allowed it to make the most of Mexico’s rising function in cross-border commerce as producers relocate from China to be nearer to the U.S. market and to attenuate geopolitical and tariff impacts related to U.S.-China tensions.
To date this yr, UPS has carried out greater than 600 provide chain mapping assessments to assist clients consider reshoring choices, the CEO mentioned.
Mexico Metropolis-based Estafeta supplies truckload, less-than-truckload, freight forwarding, distribution and customs brokerage providers, along with categorical parcel supply.
The businesses mentioned the mix would assist clients in Mexico with small bundle, healthcare logistics and contract logistics providers. Mexican shippers would achieve higher entry to world markets, whereas UPS clients would have extra environment friendly entry to Mexico.
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