FedEx Agrees to Buy TNT Express for $4.8 Billion
FedEx Corp. and Netherlands-based TNT Express announced a conditional agreement for the U.S. company to buy the package, freight and logistics operator for $4.8 billion.
The joint announcement said the all-cash offer was for 8 euros per share, or 33% more than the share closing price as of April 2. The statement said the acquisition “will transform FedEx’s European capabilities and accelerate global growth.”
FedEx, which ranks No. 2 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, is trying to buy the same company that its larger rival UPS Inc. failed to acquire two years ago because European regulators signaled that they would scuttle the deal.
The joint statement said there is “a high level of deal certainty” that FedEx could close the deal. FedEx has a smaller market share than UPS in Europe, where the package delivery of TNT competes with DHL Express, the continent’s largest package carrier.
“Customers will enjoy access to an enhanced, integrated global network, combining TNT Express strong European capabilities and FedEx’s strength in other regions globally, including North America and Asia,” the statement said.
In addition, the agreement said FedEx would honor existing employment terms of TNT workers and that the Dutch company would sell off its airline operations.
The companies also said they anticipate the completion of the transaction in the first half of next year.
