FedEx set to buy TNT for â‚¬4.4 billion
If FedEx wins regulatory approval for the proposed acquisition, it would move into the No. 2 spot among package delivery services in Europe with a 17 per cent market share.
April 8, 2015
By Donald Urquhart
FedEx Corp’s €4.4 billion bid Tuesday for TNT Express took the world’s last large potential integrator acquisition target off the table, marking a victory in FedEx’s battle to gain market share from rival United Parcel Service Inc. In 2013, European regulators blocked a $6.9 billion bid from Atlanta-based UPS, the world’s largest package delivery company, for TNT on grounds that the combined companies would have more than 30 per cent of the European market.
The transaction would mean the combined European headquarters of the two firms would be in Amsterdam, the Netherlands. 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.
If FedEx wins regulatory approval for the proposed acquisition, it would move into the No. 2 spot among package delivery services in Europe with a 17 per cent market share. That would put it ahead of UPS in Europe, but leave Deutsche Post’s DHL with the lead at 19 per cent of the market.
FedEx has a better shot at getting regulatory approval, analysts say, in part because TNT has lost share since the UPS bid and because the final outcome for Europe would not give it market dominance. The offer is expected to close in the first half of calendar year 2016.