TNT confirms Mail and Express separation
TNT has confirmed that it will split its Mail and Express units into two separate companies. The plan follows an announcement in April that TNT was considering spinning-off the Mail arm of its business.
TNT cited that the strategic challenges for the two businesses are increasingly different and that Mail and Express can be successful as standalone companies.
CEO Peter Bakker said: “As announced earlier this year, we have explored the best structure to secure the continued success of our Express and Mail divisions. Based on this review, we have concluded that a full separation will best serve both units.”
By separating the business, TNT hopes to create two “independent companies with best-in-class management, focused organisations and solid capital structures. This will allow both entities to achieve their strategic objectives to the benefit of their respective shareholders and all other stakeholders.”
TNT said that the plans are subject to the advice of the workers unions. However, the company announced today that it hopes to implement the first stage of the process – an internal separation of the businesses – by January 2011.
Bakker added: “On a standalone basis, Mail and Express will be able to operate as best-in-class in their respective industries, by building on strong management and a solid capital structure to successfully implement their strategies. Before full separation can be implemented, the Supervisory Board and Board of Management have more work to do, including the involvement of the works councils and approval requests to our shareholders.”
The announcement came on the same day that TNT revealed a slump in profit for Q2.
