FedEx Corporation and TNT Express have announced that a conditional agreement has been reached on a cash offer for all TNT Express shares for a price of 8 (US$8.70) per share. The transaction values TNT Express at an implied equity value of approximately 4.4bn (US$4.8bn).
Frederick W Smith, chairman and CEO, FedEx Corporation, 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, 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 our shareholders can already reap benefits today that otherwise would only have been available in the longer run.”
April 8, 2015
