FedEx Corporation has officially completed the acquisition of European parcel delivery firm TNT Express in a deal worth approximately 4.4bn (US$4.9bn). FedEx will now begin integrating TNT Express’s operations and facilities into its network with immediate effect. TNT will continue to operate and serve its customers under the same branding for the immediate future.
Takeover negotiations between FedEx and TNT began in April 2015 when the two companies announced that a conditional agreement had been reached on a cash offer for all TNT Express shares for a price of 8 (US$8.90) per share.
Frederick W Smith, chairman and CEO of FedEx, said, “This acquisition is a significant accomplishment and marks the beginning of a new era, filled with promise for our people, customers and shareowners. We are proud to celebrate the joining of two iconic companies and the approximately 400,000 team members who are committed to serving customers around the world.
“The timing of this historic event is important, particularly in the current market environment where global e-commerce is growing at double-digit rates. Adding TNT’s capabilities to our existing world-class suite of services, including GENCO and the recently relaunched FedEx CrossBorder, will further expand the ability of FedEx to support business connections around the world.
“Over our 43-year history, FedEx has repeatedly reinvented and revolutionized the industry, from the first overnight express service backed by a money-back guarantee to the invention of internet shipping. And just as we revolutionized the US domestic parcel business through the acquisition and development of what is now FedEx Ground, the acquisition of TNT will change the way customers view FedEx around the world,” added Smith.
May 31, 2016