Moneycontrol
Last Updated : May 25, 2016 08:39 PM IST | Source: PTI

FedEx acquires Dutch rival TNT Express for 4.4 billion euro

Global logistics major FedEx on May 25 said it has acquired Dutch rival TNT Express for 4.4 billion euro and is poised to expand and reshape transportation and logistics industry


Global logistics major FedEx on May 25 said it has acquired Dutch rival TNT Express for 4.4 billion euro and is poised to expand and reshape transportation and logistics industry.


"FedEx Corporation, FedEx Acquisition BV (the offeror) and TNT Express NV jointly announce that FedEx has acquired TNT Express. The (euro) 4.4 billion acquisition combines the strengths of the companies the world's largest air express network and an unparallelled European road network, which will expand the existing FedEx portfolio and reshape the global transportation and logistics industry," FedEx said in a statement.


"This acquisition is a significant accomplishment and marks the beginning of a new era, filled with promise for its people, customers and shareowners," said Frederick W Smith, Chairman and CEO of FedEx.


"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," he said.


The timing of the event is important in view of the current market environment where global e-commerce is growing at double-digit rates, he said.


"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," Smith said.


FedEx in over four decades has repeatedly reinvented and revolutionised the industry, from the first overnight express service backed by a money-back guarantee to the invention of internet shipping.


Alan B Graf, Jr, FedEx Executive Vice President and Chief Financial Officer said: "The TNT team members bring 70 years of diverse experience, which combined with that of FedEx team members, will make this integration a success." The statement said shareholders may tender their shares under the Offer during a post-closing acceptance period which will expire at 17:40 hours, Amsterdam time, on 1 June 2016.

FedEx has annual revenues of USD 49 billion (not including TNT Express).

First Published on May 25, 2016 08:08 pm
More From
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant