Deutsche Post wins €1-bln EU ruling on state aid

Deutsche Post wins €1-bln EU ruling on state aid
Photo: DPA
German mail services and logistics group Deutsche Post said on Tuesday it would be repaid about €1 billion ($1.58 billion) from the German government after a European court overturned a EU decision concerning state aid.

“Deutsche Post World Net will receive a repayment of around €1 billion after the European Court of the First Instance in Luxembourg today overturned a 2002 decision by the European Commission,” a statement said.

“The company expects to receive the cash inflow in several weeks’ time and would prefer to earmark the amount for returning to shareholders, pending clarity regarding other cash-relevant issues,” that were not identified, it added.

In June 2002, the European Commission had ordered Deutsche Post to reimburse €907 million in state aid that Brussels deemed to be illegal. The company said Tuesday that following its successful appeal of the decision, “Germany will now repay this amount with interest to Deutsche Post.”