Tags: fedex | tnt express | dutch | rival | takeover

FedEx's TNT Express Takeover: $4.8B Deal Does What UPS Couldn't

By    |   Tuesday, 07 Apr 2015 11:48 AM

FedEx will take over TNT Express, its Dutch rival, in a 4.4 billion euro ($4.8 billion) deal that UPS failed to secure two years ago, The Associated Press reported.

FedEx said Tuesday it has reached a conditional agreement with TNT Express' management on an all-cash offer of eight euros ($8.75) per TNT share. That represents a premium of 33 percent over the share's April 2 closing price, the companies said.

The deal is expected to close in the first half of 2016, pending shareholder approval. Dutch postal company PostNL, which owns a 14.7 percent stake in TNT Express, said it supports the bid.

The deal comes two years after United Parcel Service Inc. dropped its own 5.2 billion-euro takeover bid for the Dutch company, citing objections by European Union regulators worried about the company becoming too dominant.

TNT Express and FedEx said they are "confident that anti-trust concerns, if any, can be addressed adequately in a timely fashion."

FedEx Corp. chairman and CEO Fred Smith said in a statement that the deal "allows us to quickly broaden our portfolio of international transportation solutions to take advantage of market trends — especially the continuing growth of global e-commerce — and positions FedEx for greater long-term profitable growth."

TNT Express CEO Tex Gunning said that while his company did not solicit the takeover bid, "we truly believe that FedEx's proposal, both from a financial and a nonfinancial view, is good news for all stakeholders."

FedEx is based in Memphis, Tennessee, while TNT Express is headquartered in Hoofddorp, in the Netherlands.

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FedEx will take over TNT Express, its Dutch rival, in a 4.4 billion euro ($4.8 billion) deal that UPS failed to secure two years ago, The Associated Press reported.
fedex, tnt express, dutch, rival, takeover
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2015-48-07
Tuesday, 07 Apr 2015 11:48 AM
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