UPS said today that TNT Express shareholders now have until the end of August to decide on its $6.3bn offer for the Amsterdam-based integrator.
The US company issued a statement today confirming that its EUR 9.50 per share cash offer officially commences tomorrow. The offer values TNT Express at around EUR 5bn ($6.3bn USD).
TNT Express is holding an Extraordinary General Meeting on 6th August to discuss the offer, after publishing its results for the first half of 2012 on 30 July.
In a joint statement, UPS and TNT said: “The Executive Board and the Supervisory Board of TNT Express fully support and unanimously recommend the offer to the shareholders for acceptance.”
The firms added that Dutch postal service PostNL, which holds a 29.8% share of TNT Express, “has irrevocably undertaken to tender its shares under the offer.”
As they issued their statement, UPS and TNT Express also confirmed that UPS filed its request for EU regulatory approval for the merger on Friday (15th June).
The 31 August offer deadline can be extended for between two and 10 weeks if needed.
UPS said the cash offer for TNT Express, first made public in March, represented a “compelling strategic rationale” for both companies’ shareholders.
After the sale, the merged company would have annual revenues of more than $60bn USD (EUR 45bn), joining the “complementary strengths” of both organisations.
“TNT Express customers will benefit from UPS’s unparalleled access to the North American market as well as access to its logistics solutions, such as global freight forwarding and distribution capabilities,” said the joint statement.
“UPS customers will benefit from access to expanded express and road freight capabilities in Europe and broader capabilities in fast-growing regions such as Asia-Pacific and Latin America.”
The firms said unions in Europe had asked specific questions about the merger that “could not be answered at this stage”, but that agreements have been reached with the Central Works Council and the European Works Council on the future policy of UPS and consequences of the acquisition for employees.
Following the acquisition, TNT Express executives Marie-Christine Lombard and Bernard Bot will continue to serve as part of the company’s Executive Board, but “as soon as practicably possible” its supervisory board will include three UPS executives – Dan Brutto, Jim Barber and Jeff Firestone – as well as two existing TNT supervisory board members, Shemaya Levy and Margot Scheltema.
UPS is expecting a four-year integration programme to fully merge the TNT Express global network with its own operations, and is expecting up to EUR 550m in cost savings in doing so.
TNT Express shares were trading at EUR 9.25 this morning.
Source: Post&Parcel/UPS/TNT Express