Home Delivery Network to buy DHL's UK parcel business
* HDN to acquire DHL Domestic, no price disclosed
* Parcel delivery benefits from online shopping boom
* Combined market share to grow to 17 percent
LONDON, Jan 5 (Reuters) - Britain's Home Delivery Network said it would buy DHL's UK parcel delivery operations, DHL Domestic, from Deutsche Post DHL (DPWGn.DE), growing its market share in a sector profiting from a boom in online shopping.
"John Lewis [JLP.UL] and Next [NXT.L] have all reported significant online growth; that has an impact on our company," Gary Monk, chairman at Home Delivery Network told Reuters.
"ASOS (ASOS.L) and eBay (EBAY.O) have created a very strong, growing parcel delivery business," he added.
The parcel delivery company, headquartered in Merseyside, northwest England, said the combined businesses would have annual revenues of more than 600 million pounds ($966.5 million), delivering over 180 million parcels a year, with a combined market share of 17 percent.
"It's a transformational deal for us. It will give us a more efficient business, particularly in competing with Royal Mail," said Monk.
DHL, the express mail and logistics arm of Deutsche Post DHL, will keep its UK International Time Definite and Same Day express services. Its other UK businesses will not be affected.
HDN declined to say how much it would pay for DHL Domestic. (Reporting by Lorraine Turner, editing by Will Waterman) ($1=.6208 Pound)
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