United Parcel Service Inc (NYSE:UPS) has terminated its planned acquisition of Estafeta, a leading Mexican express delivery and logistics company, after the two parties were unable to satisfy all required closing conditions.
The Atlanta-based package delivery company disclosed the cancellation in a filing with the Securities and Exchange Commission on Thursday, ending a deal first announced in July 2024.
At the time, UPS said it expected to complete the transaction by the end of that year.
Regulatory reviews and pre-closing requirements delayed the timeline, and after more than a year of efforts, the companies were unable to finalize the agreement.
The acquisition was designed to strengthen UPS’s presence in Mexico and support growing cross-border trade, particularly amid a wave of nearshoring as manufacturers shift operations closer to the United States to reduce geopolitical and tariff-related risks.
Estafeta, based in Mexico, provides a range of logistics services including parcel delivery, freight forwarding, and customs brokerage. The deal had been expected to improve efficiency in US-Mexico trade flows and expand service options for customers.
Despite the cancellation, UPS emphasized that Mexico remains a strategic focus. “We remain committed to growth in Mexico and delivering the reliable service our customers expect,” a UPS spokesperson said in an emailed statement to media outlets.
The decision to call off the acquisition closes a more than year-long effort by UPS, which first announced its plan to acquire Estafeta in July 2024.
Shares of UPS were unchanged on the news, trading hands at $84 pre-market.