UPS kicks off US$6.6B TNT takeover offer

United Parcel Service (UPS) has launched its €5.16 billion cash bid for Dutch rival TNT Express in June with the offer period for the €9.50 per share bid running through 31 August “unless extended,” the two companies said. UPS reiterated it is seeking support from at least 80 per cent of shareholders in TNT Express, whose executive and supervisory boards backed the offer that was tabled on 19 March.


UPS kicks off US$6.6B TNT takeover offer


United Parcel Service (UPS) has launched its €5.16 billion cash bid for Dutch rival TNT Express in June with the offer period for the €9.50 per share bid running through 31 August “unless extended,” the two companies said. UPS reiterated it is seeking support from
at least 80 per cent of shareholders in TNT Express, whose executive and supervisory boards backed the offer that was tabled on 19 March. UPS is still seeking clearance from European Union regulators for what amounts to the biggest acquisition in the US firm’s 105-year history.

Kurt Kuehn, UPS chief financial officer, has expressed confidence the deal will get regulatory approval by the third quarter. “The transaction will create a global leader in the logistics industry with more than US$60 billion in annual revenue and an enhanced, integrated global network,” the companies said. UPS added that merging the two companies would produce annual pre-tax cost
savings of $510 million to $710 million after four years.

 

TNT has a leading 18 per cent share of the intra-Europe express market while Germany’s Deutsche Post DHL has a 16 per cent share; UPS a 14 per cent share; and FedEx five per cent.