FedEx is set to buy its Dutch rival TNT Express for USD 4.8 billion. Both the firms expect the deal to be closed in the first half of 2016.
Us courier delivery company, FedEx is buying Dutch rival TNT Express for USD 4.8 billion. According to FedEx the tie-up will transform its European capabilities and allow its customers to enjoy access to an enhanced global network.
Both the firms anticipate that the deal would close in the first half of 2016.
Explaining the rationale behind the deal Fred Smith, Chairman & CEO, FedEx said the dollar exchange ratio is favourable at the current juncture. Moreover, quantitative easing and the lower oil prices also mean a better outlook for the European economy than it was for some period of time.
The Company he said has looked at this transaction very carefully. “We've got great lawyers. Both in Europe and here, we believe the market share numbers support approval of this deal by EU competitions authorities. We look forward to working with them through that process to get this approved,” he added.
The deal represents a 33% premium over the TNT's closing share price on April 2.