Recession ‘could boost takeover activity in haulage sector’

Posted 21/07/2009

Haulage companies that have performed strongly throughout the recession could be tempted to acquire smaller rivals, an expert has stated.

David Pattison, author of Road Haulage 3rd Edition 2009, stated that a number of factors are creating an ideal environment for merger and acquisition activity in the sector.

For instance, many companies have large cash reserves that are “generating nothing” because interest rates are at a record low.

Furthermore, he said consolidation could also be driven by company bosses deciding to leave the industry, Road Transport reports.

Mr Pattison stated that this could present opportunities for rival firms that want to boost their market share and customer base.

“They must be like kids in a sweet shop at the moment – all those distressed competitors available at a fraction of their true value,” he commented.

This comes after Geoff Dunning, chief executive of the Road Haulage Association, said the industry is likely to be leaner and more efficient when the economy picks up.