FedEx to buy TNT Express for $4.8 billion
FedEx is to buy Dutch firm TNT Express in order to ‘transform FedEx’s European capabilities and accelerate global growth’. The companies issued a joint press release saying that they had entered into a merger protocol on an all cash public offer by FedEx for all issued and outstanding ordinary shares of TNT Express at an offer price of €8.00 per share.
PostNL signed an irrevocable undertaking with FedEx in support of the Offer.
The statement said that customers will enjoy access to an enhanced, integrated global network, combining TNT Express strong European capabilities and FedEx’s strength in other regions globally, including North America and Asia.
It states that FedEx and TNT Express employees share a commitment to serving customers and delivering value for shareholders and supporting the communities they live and work in.
The European regional headquarters of the combined companies will be in Amsterdam/Hoofddorp.
TNT Express hub in Liege will be maintained as a significant operation for the group going forward.
TNT Express’ airline operations will be divested, in compliance with applicable airline ownership regulations.
Frederick W. Smith, Chairman and CEO 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 trends – especially the continuing growth of global e-commerce – and positions FedEx for greater long-term profitable growth.”
Tex Gunning, CEO of TNT Express, said: “This offer comes at a time of important transformations within TNT Express and we were fully geared to executing our stand-alone strategy. But while we did not solicit an acquisition, we truly believe that FedEx’s proposal, both from a financial and a non-financial view, is good news for all stakeholders. Our people and customers can profit from the true global reach and expanded propositions, while with this offer our shareholders can already reap benefits today that otherwise would only have been available in the longer run.”