UPS Shifts Strategy: Investors Weigh Risks of Internal Overhaul

In a move that has taken market observers by surprise, United Parcel Service (UPS) is executing a significant strategic pivot. The logistics giant has abruptly terminated its planned acquisition of Mexican competitor Estafeta, a deal originally announced in July 2024 that was intended to bolster its presence in Latin America. This decision signals a sharp turn away from external growth and toward a focus on internal transformation, leaving investors to question whether this new direction can steer the company out of its current period of weakness.

The company confirmed the end of the Estafeta takeover on Wednesday, citing “unsatisfied closing conditions” without providing further specifics. This reversal comes after fourteen months of planning. Instead of pursuing the expansion, UPS will now concentrate fully... Read more...