Britain's parcel company Home Delivery Network announced that it has hit a deal with Deutsche Post DHL to buy its UK domestic parcel delivery business. However, HDN declined to say how much it would pay for the DHL’s domestic operations.

Merseyside-based HDN said the combined businesses would have annual revenues of more than 600 million pounds.

Company’s chairman Gary Monk said it was a transformational deal that would assist the company in competing with Royal Mail, which has a market of approximately 30 per cent.

Commenting on the issue, HDN’s chief executive Brian Gaunt said, “Bringing these two businesses together gives us a broader service proposition than we have previously had.”

The deal, which provides HDN with a combined market share of 17 per cent, is yet to obtain regulatory approval.