FedEx-TNT Deal Clears Final Regulatory Hurdle
The biggest acquisition in FedEx Corp.'s 43-year history has cleared its final regulatory hurdle, after the deal received approval from Chinese officials, the parcel delivery company said.
According to FedEx, the $4.8 billion acquisition of Europe's third-largest delivery company entered the home stretch with approval by Ministry of Commerce People's Republic of China. The acquisition is expected to close by June 30.
"I want to thank the team members who collaborated with regulatory authorities around the world to help us reach this important acquisition milestone,” FedEx Express CEO David Bronczek said.
“As we work towards closing the acquisition, we look forward to welcoming TNT Express team members to the FedEx family of companies as we expand our portfolio of solutions and connect even more people and possibilities," Bronczek said.
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Regulatory approvals cleared the way for TNT Express stockholders to tender their shares. TNT shareholders voted in favor of the deal last fall.
Memphis, Tennessee-based FedEx announced plans for the purchase of Dutch rival TNT Express last April. The deal would make FedEx Europe’s No. 2 package carrier.
At the time, FedEx executives likened the acquisition to a 1998 purchase of Caliber Systems Inc.’s RPS, a ground package delivery network that became FedEx Ground. FedEx Ground competes head to head against UPS Inc. and consistently delivers FedEx’s highest profit margins.
Officials said owning a ground delivery company in Europe was expected to translate into lower operating costs and an improved ability to transport cross-border shipments, particularly in the burgeoning e-commerce area.
FedEx rival United Parcel Service of Atlanta had previously tried to buy TNT for about $6.8 billion but ultimately gave up, in part because of European antitrust issues.
On April 29, TNT Express CEO Tex Gunning said, “With this final regulatory approval, we are one step closer to making the vision of combining the complementary networks of FedEx and TNT Express a reality. This intended acquisition will bring value for our customers, shareholders and employees."
FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
