FedEx Discloses Financing Plans for TNT
FedEx Corp. said it plans to pay for the majority of its $5 billion purchase of Dutch parcel and freight carrier TNT N.V. with the U.S. buyer’s own funds.
FedEx, based in Memphis, Tennessee, disclosed financing for its purchase at 8 euros per share ($9.11). The amount includes 1.5 billion euros in cash, 900 million euros from FedEx’s credit line and 2 billion euros in debt financing that already has been committed. The value of the transaction is $5 billion based on the May 13 dollar/euro exchange rate.
FedEx one month ago announced plans to buy TNT as the largest single acquisition in a wave of merger activity both globally and in the United States this year. Other recent acquisitions have been announced by XPO Logistics, Echo Global Logistics and Asian companies that are buying global logistics firms.
FedEx, which ranks No. 2 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, made the financing disclosure as one the required periodic updates on the transaction under Dutch law. The final offer document will be ready no later than June 30, the U.S. package, freight and express company said.
Completion of the transaction after multiple countries’ regulatory review is expected within a year of the April 7 announcement.
