FedEx Completes TNT Acquisition, Starts Asset Integration Immediately
FedEx Corp. announced it would begin integration of TNT Express assets immediately after completing the $4.9 billion deal that is the buyer’s largest-ever acquisition.
“In the near term, customers can expect to interact with each company as they always have and receive the world-class service they have come to expect,” said the statement from the Memphis, Tennessee-based company. “Once the integration is complete, FedEx expects customers to enjoy an expanded global offering that draws upon the breadth of expertise from both companies.”
FedEx didn’t give any details about its financial expectations or specific steps that would follow the acquisition that was completed 14 months after its initial offer. The statement did say the move will add “significant value for FedEx shareowners, team members and customers.”
“This acquisition is a significant accomplishment and marks the beginning of a new era, filled with promise for our people, customers and shareowners,” said Frederick Smith, Chairman and CEO of FedEx. “We are proud to celebrate the joining of two iconic companies and the approximately 400,000 team members who are committed to serving customers around the world.
“The timing of this historic event is important, particularly in the current market environment where global e-commerce is growing at double-digit rates,” Smith added. “Adding TNT’s capabilities to our existing world-class suite of services, including GENCO and the recently relaunched FedEx CrossBorder, will further expand the ability of FedEx to support business connections around the world.”
FedEx’s announcement said the company plans to leverage technology, infrastructure, facilities and operational capabilities as a stronger package delivery company emerges in Europe, which is a $60 billion market with potential e-commerce growth at a 15% pace.
FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
