FedEx and TNT extend public offer period

FedEx Boeing 777 Freighter

FedEx and TNT Express have extended the public offer acceptance period for all the issued and outstanding ordinary shares of TNT until 8 January.

FedEx and TNT explain in a joint statement: “The offer is conditional on obtaining competition approval from the relevant antitrust authorities in the European Union, Brazil, China and, to the extent applicable, the US. FedEx and TNT Express anticipate making a filing in the US before the end of the calendar year.”

The deal is also being reviewed by other antitrust agencies, including the Ministry of Commerce (MOFCOM) in China and the Conselho Administrativo de Defesa Econômica (CADE) in Brazil.

The takeover by FedEx of TNT Express is also set to be given the go ahead by the European Commission for its 4.4 billion euro ($4.8 billion) takeover of the Dutch courier delivery firm. The companies received no antitrust objections from the Commission up to the closing date of 23 October.

The deal is still subject to other regulatory approvals and will not be finalised until the green light is given by all.

FedEx and TNT add they are track to obtain all necessary approvals and competition clearance, and expect to close the deal in first half of 2016.

The integrators reached a conditional agreement on the deal in April, before FedEx made the offer in August and TNT shareholders approved it in October.

The European competition authorities rejected a 5.2 billion euro offer for TNT by UPS two years ago, but the FedEx deal is likely to be given the green light by Brussels as it has less activity in the European market.

The takeover would give FedEx a significant foothold in the European express market. Industry forecasters say the two firms will have a combined 17 per cent share in Europe, in second place to DHL, but ahead of UPS.