Deutsche Post DHL is buying independent British postal operator UK Mail Group (UKM.L) for 243 million pounds ($316 million) to cement its foothold in Europe's three largest e-commerce markets, Britain, Germany and France.

European postal firms are having to cut their costs and invest in new technology and services as they try to stay ahead of new entrants in the lucrative parcel delivery market such as U.S. online retailer Amazon.com.

The cash offer from Deutsche Post, the world's biggest mail and logistics group, was recommended by UK Mail's directors, the two companies said on Wednesday.

Read more at Reuters.