Evri will merge with DHL’s UK parcel delivery business to create a combined courier firm handling more than a billion parcels and a billion letters a year.

DHL focuses on faster, secure higher-value deliveries of items such as computers or phones, whereas Evri handles much larger volumes of lower-value goods such as clothing.

Evri’s deliveries are handled by self-employed couriers using their own vehicles, while DHL’s parcels are delivered by a combination of couriers and the company’s own fleet of vehicles.

The companies hope that combining the two operations will offer “greater choice” and “cost-competitive solutions” in the UK.

Evri said the deal will also expand its international delivery capacity by giving it access to DHL’s global network.

DHL’s e-commerce business will be renamed “Evri Premium – a network of DHL eCommerce”.

DHL delivers a billion letters a year in the UK, mainly for businesses sending out bulk mail to clients – and the merger will see Evri offer a letter service for the first time.

It hopes to use this service to handle deliveries of smaller items as well as letters.

The group said its combined operation will have access to a network of 15,000 out-of-home delivery points in shops and lockers.

With about a billion parcels a year, the merged business would get closer to Royal Mail’s parcel volumes. It delivered 1.3 billion parcels and 6.7 billion letters last year, according to its annual report.

Martijn de Lange, the chief executive of Evri, said that over the last decade Evri had “grown ten-fold in size”.

He added the merger would “further expand our access into the European and global e-commerce markets”.

After the merger DHL will acquire a minority stake in Evri – financial terms have not been disclosed.

DHL’s other services in the UK, such as the DHL Express international delivery service are not included in the deal.

The merger is still subject to approval from the Competition and Markets Authority.