TNT dismisses FedEX buy-out rumour

Rumour that FedEX Corp could buy out Dutch-owned TNT, reported in the Financial Times, has been dismissed as speculation by TNT.

Although the idea isn’t a new one, the potential for a complete or partial buyout could be greater than ever as TNT, like many postal operators across Europe, feels the pinch of higher operating costs coupled with economic slow-down. It could be an attractive proposition for FedEX as the acquisition would strengthen FedEX’s presence in Europe.

For FedEX too, these are also difficult times, with the U.S. in the midst of a recession, but merging the two companies would enable both to ride out the present economic decline and put added pressure on Germany’s Deutsche Post. FedEX has already announced its first quarterly loss in over a decade.

If there is any basis to the rumour, it could increase FedEx’s European parcel-delivery sales by as much as 144 percent and cause other European operators to look again at further mergers.

However, TNT posted a message on its website which read:

“With reference to various news articles today in which TNT was mentioned, TNT wishes to reiterate its policy not to comment on such speculation and market rumours.”