FedEx Sets May 25 for Completion of TNT Acquisition
FedEx Corp. and TNT N.V., the Dutch package and freight operator, announced their $4.9 billion combination will be completed on May 25, a move that represents the largest acquisition ever for the U.S. company.
The joint announcement will bring an end to a 13-month review process that included obtaining regulatory clearance from dozens of countries for the offer of 8 euros ($8.96) per share. The final regulatory approval was obtained last month for the offer that will give FedEx similar presence in the European package market with UPS Inc. against larger competitor DHL Express. FedEx also has said that buying TNT will strengthen its presence in Asia and other markets. A total of 485 million, or 88%, of shares already have been tendered.
“We are pleased with the outcome of the public share offer,” said David Bronczek, CEO of FedEx Express. “May 25, 2016, will be a profound moment in the history of these two great companies. Together, we will transform the global transportation industry, connecting even more people and possibilities around the world.”
FedEx was successful in its bid for TNT about three years after UPS tried to buy the marginally profitable Dutch company. UPS offered nearly $7 billion in 2012 for TNT, but its bid was undone by European regulators who feared reduced competition in package and freight markets in the region.
FedEx hasn’t yet said how it plans to integrate the companies or disclosed any financial targets, divestitures or other next steps. Last year, TNT reported income of $42 million before interest and taxes on revenue of $7.6 billion. By comparison, FedEx’s revenue of $49 billion positions the Memphis, Tennessee-based company at No. 2 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
TNT shareholders can tender their stock until June 1, according to the joint statement.
The completion process includes plans to buy nontendered shares at the same price but without interest and with potential tax consequences. FedEx also plans to request de-listing of TNT shares soon after the completion, its statement said.
