DX Group in City of London police probe
DX Group, the delivery company with a major operation in the Black Country, is being investigated by the City of London Police over an allegation relating to its secure document operations.
The move has cast a shadow over its proposed merger with John Menzies' distribution unit.
The investigation, being undertaken by City's Economic Crime Directorate, is at a 'very early stage' and DX said it was 'co-operating fully' with the probe.
"The board of DX announces that it has been notified by the City of London Police Economic Crime Directorate of an allegation that has been made against the company which has resulted in the commencement of a preliminary investigation centred on the DX Exchange operations," the company said in a stock exchange announcement.
"The investigation is at a very early stage. The board of DX received the details of the allegation on June 7, 2017, and is co-operating fully with the City of London Police.
"A further announcement will be made when appropriate."
DX is based in Slough but employs around 550 people at its two delivery depots in Willenhall, at Crestwood House in Birches Rise and Ashmore Lake Way. It recently failed in its attempt to secure planning permission for a new £36m super-hub at Essington.
This would have provided a new home for its existing operations and created 150 new jobs But South Staffordshire councillors voted against the scheme following fierce opposition from local people.
DX has subsequently said it is looking for an alternative site, which could see it move from Willenhall to Rugby or Coventry.
The company's DX Exchange business offers next day delivery of documents including contracts, deeds, property settlements, financial agreements, barrister’s briefs and original official documents. It has around 25,000 members of its DX Exchange network across the UK and Ireland. DX Exchange operates through a network of 4,200 mailbox locations, known as Exchanges, where members can send and receive their legal documents.
The logistics firm is in the midst of a £40 million merger with Menzies' distribution unit, but the Edinburgh company said that it is now "considering its position".
In a reactive statement Menzies said: "The board of John Menzies notes the announcement made this morning by DX.
"The board of John Menzies is considering its position and will make a further announcement as and when appropriate."
Shares in DX have been suspended since March, when news of the proposed tie-up was announced.
The deal had already come under pressure from activist investor Gatemore, which only dropped its opposition to the merger this week after the pair revised terms.
