Tag: Netherlands

TNT and trade unions agree on collective labour agreement

With reference to the press release from May 2008, TNT and trade unions ABVAKABO FNV, BVPP, CNV Publieke Zaak and VPP have signed the new collective labour agreement for TNT. Trade union members have accepted the agreement in principle reached by negotiators and TNT on 23 May. The new collective labour agreement will be in effect from 1 April 2008 to 1 April 2009.

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FedEx plans to acquire TNT would shake up the industry

Independent research company Datamonitor says FedEx is reported to be interested in acquiring TNT, which seems to suggest that it does not want to rely on organic growth to strengthen its position in the global express market. Although combining two of the world’s leading players would put strong pressure on the other two integrators, UPS and DHL, overall, the competitiveness of the industry looks set to remain intact.

FedEx has already been trying to reduce its dependence on its home market and the use of air networks by building a stronger presence in the European market, as well as investing in its Asian network. The acquisition of ANC in the UK helped to secure a stronger position in one of Europe’s key markets, and TNT’s dominant position in the intra-European express market makes it an ideal target that would allow FedEx to develop its position in Europe further.

Preliminary results from Datamonitor’s upcoming European Express Market Map suggest that, despite showing decreasing growth rates, the European express market is still in a good state, with the B2C and Eastern European markets acting as its main growth drivers. TNT is particularly well positioned to capture any growth in the B2B markets as it has a strong road and air network that is operational in all the key markets. The company also boasts a strong position in emerging markets in the rest of the world, notably the Brazilian, Russian, Indian and Chinese (BRIC) markets and the Middle East.

FedEx and TNT have reciprocal geographic strengths and, as TNT has lost its monopoly in its home mail market, a combination of the two companies appears to make strategic sense. The merger would also put significant pressure on European market leader DHL, which is trying to recover its market position in the US, where it continues to lose money in a co-operation agreement with UPS (which has also been reported to have an interest in acquiring TNT).

Should the tie-up be completed, the effects would be far-reaching, says Datamonitor Logistics and Express senior analyst Erik Van Baaren. “Significant pressure would be placed upon DHL and UPS, given that they would have to compete with a global player capable of exploiting greater economies of scale and serving the needs of globally operating companies more efficiently as further internationalization of the industry takes shape.”

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TNT shares jump on report of Fedex talks

Shares in TNT NV jumped almost 30 per cent on Monday 14th July after a report that FedEx Corp. is in preliminary talks to acquire it, raising the prospect of a bidding war for the Dutch mail company.

The Financial Times newspaper reported on Saturday that FedEx Corp. wanted to add to its European parcel delivery service and that both United Parcel Service and FedEx have “coveted” TNT’s European parcel business.

TNT and FedEx declined to comment on the report.

“Such a move would make a lot of strategic sense for FedEx, given its predominantly US-business gearing and the weakness in the US Express market,” said ING analyst Axel Funhoff in a note.

“Should FedEx make a formal bid for TNT – there could be a quick counter bid from UPS, who should be equally interested in TNT but which has deeper pockets.”

TNT shares were up 26 per cent at EUR 23.26 by 0946 GMT, making it the main gainer in the DJ Stoxx industrial goods and services index, which was up 2 per cent.

The smallest of the world’s top four express delivery companies has often been seen as a target for its bigger peers and some analysts say this could be the opportunity for them to pounce.

TNT shares had shed about a third of their value since the start of the year due to uncertainty over its German business, slowing economic growth and rising oil prices.

Europe’s second-biggest mail and Logistics Company by market value, which competes with Deutsche Post, is not active in the domestic U.S. market. It has a strong presence in Europe and is expanding in Asia and South America.

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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.”

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