FedEx buys TNT Express

0
11

FedEx has had a takeover bid of 4.4 billion euros ($4.8 billion) for Dutch courier delivery firm TNT Express accepted by TNT, but the deal is subject to European regulatory approval.

The European Union’s (EU) competition commission rejected a 5.2 billion euro offer for TNT Express by UPS two years ago, but the firms believe the deal will be given the green lights as FedEx has less activity in the EU market.

The integrators say they reached a conditional agreement on Tuesday 7 April for a recommended all-cash public offer of eight euros per ordinary TNT Express share.

FedEx and TNT Express say the offer price represents a premium of 33 per cent over the closing price of 2 April 2015 and a premium of 42 per cent, over the average volume weighted price per TNT Express share of 5.63 euros, over the last three calendar months.

FedEx explains the deal will help, “transform its European capabilities and accelerate global growth”. It says that customers will enjoy global network access combining TNT Express’ European service and FedEx’s strength in other regions globally, including North America and Asia.

FedEx chairman and chief executive officer (CEO), Frederick Smith, says: “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 ecommerce.”

FedEx says the TNT Express hub in Liege (Belgium) will be maintained as a significant operation. TNT Express’ airline operations will be sold in compliance with applicable airline ownership regulations in the European Union.

FedEx says it intends to finance the offer by using available cash resources and through existing and new debt arrangements.

TNT Express CEO, Tex Gunning, says: “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.”

Both companies anticipate that the offer will close sometime in the first half of the 2016 calendar year.

LEAVE A REPLY

Please enter your comment!
Please enter your name here