FedEx strikes deal to buy TNT Express

FedEx strikes deal to buy TNT Express

The giant American parcel delivery company has reached a conditional agreement to buy its Dutch counterpart for €4.4 billion.  Besides boosting FedEx’s European network it will increase competition on UPS and DHL.

According to a joint statement, the Offer Price represents a premium of 33% over the closing price prior to the Easter break and a premium of 42% over the average volume weighted price per TNT Express share of €5.63 over the last three calendar months.

The transaction, which has been unanimously recommended and supported by TNT Express’ executive and supervisory boards, will expand FedEx’s capacity both in Europe and across the globe.

Both parties expect the Offer to close in the first half of next year and are confident that anti-trust concerns, if any, can be addressed.  Certain non-financial employment and logistical covenants have also been agreed.

It is further anticipated that by drawing on their strengths, the combined companies would be a strong global competitor in the transportation and logistics industry.

Frederick W. Smith, Chairman and CEO of FedEx Corp., said: “We believe that this strategic acquisition will add significant value for FedEx shareowners, team members and customers around the globe.

“This transaction allows us to quickly broaden our portfolio of international transportation solutions to take advantage of market trends – especially the continuing growth of global e-commerce – and positions FedEx for greater long-term profitable growth.”

Tex Gunning, CEO of TNT Express, said: “This offer comes at a time of important transformations within TNT Express and we were fully geared to executing our stand-alone strategy. But while we did not solicit an acquisition, we truly believe that FedEx’s proposal, both from a financial and a non-financial view, is good news for all stakeholders.

“Our people and customers can profit from the true global reach and expanded propositions, while with this offer our shareholders can already reap benefits today that otherwise would only have been available in the longer run.”