UPS Cancels Acquisition of Estafeta

United Parcel Service (UPS) has officially terminated its planned acquisition of Estafeta, one of Mexico’s leading logistics and express delivery companies. The cancellation was disclosed in a Form 8-K filing with the US Securities and Exchange Commission (SEC) on Sept. 17, signed by Brian Dykes, Executive Vice President and Chief Financial Officer, UPS.

In the filing, UPS stated that the decision was made due to the inability of all closing conditions to be satisfied.

Estafeta confirmed the termination in a statement: “We inform you that the plans to sell Estafeta to United Parcel Services have been terminated, as no agreement was reached on the final closing terms. Our focus remains on staying close to our customers to provide excellent logistics services, ensuring continuity of our operations and strengthening the relationships we have built together.”

The company also stressed its commitment to the Mexican market, adding: “With our core purpose, bringing people closer and connecting businesses, stronger than ever, we will continue to drive the growth of our customers and partners. We deeply appreciate the trust placed in us and reaffirm that we will keep working with determination, ongoing investment, job creation, and commitment to Mexico.”

The decision comes over a year after UPS announced its intent to acquire Estafeta in June 2024. The acquisition was expected to close by the end of 2024, pending customary closing conditions and regulatory approvals. The deal had been framed as a cornerstone of UPS’s “Better and Bolder” strategy, aimed at strengthening its footprint in Mexico and helping businesses of all sizes take advantage of the country’s manufacturing boom, shifting global supply chains, and expanding North American trade.

Due to the company’s internal guidelines, the UPS anniversary event in Mexico, which was expected to be celebrated on Sept. 24, will be postponed.

The cancellation represents a major adjustment to UPS’s regional growth strategy, while Estafeta will continue to operate independently as a key logistics player in Mexico.

This article has been updated with a statement from UPS Mexico: “UPS has terminated its plans to acquire Estafeta. We remain committed to growth in Mexico and to providing the reliable service our customers expect.”