Two major logistics firms are set to come together as part of a multi-billion euro deal.
US parcel delivery company FedEx is set to acquire Dutch rival TNT Express for around €4.4 billion (£3.2 billion). The acquisition, aimed at expanding FedEx's European operations, moved closer after the two companies announced that they had reached a "conditional agreement".
In a joint statement, FedEx and TNT Express explained that the deal would see FedEx offer shareholders €8 per share, representing a 33 per cent premium of TNT's closing share price on April 2nd. The transaction has been "unanimously recommended and supported" by TNT Express' executive board and supervisory board providing a "high level of deal certainty".
Under the deal, the companies have agreed that existing employment terms of TNT Express will be respected. The newly formed organisation will hold its European regional headquarters in Amsterdam/Hoofddorp while there will also be another hub in Liege, Belgium.
The announcement sparked a surge in share price for both companies. FedEx closed 0.27 per cent up at 16:06 EDT on Monday (April 6th), while TNT Express' share price jumped a huge 30.58 per cent as of 09:00 BST on Tuesday.
Strengthening European operations
FedEx has made it clear that it has been wanting to increase its operations in mainland Europe and the acquisition of TNT Express takes this one step closer. The Dutch company currently works in 61 countries delivering documents, parcels and pieces of freight to all corners of the globe.
Frederick W. Smith, chairman and chief executive officer of FedEx Corp., said: “We believe that this strategic acquisition will add significant value for FedEx shareowners, team members and customers around the globe. This transaction allows us to quickly broaden our portfolio of international transportation solutions to take advantage of market trend."
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