* Tennessee - FedEx to buy rival TNT Express for €4.4bn
-- USA parcels delivery firm FedEx is to buy its Dutch rival TNT Express for €4.4bn ($4.8bn; £3.2bn) as it looks to expand its European operations... In a joint statement, the companies said both management boards had reached a "conditional agreement"... FedEx has offered shareholders €8 per share, a 33% premium on TNT's closing share price on 2 April... It comes two years after United Parcel Service (UPS) pulled out of a €5.2bn bid for the Dutch firm... UPS pulled out of the deal following opposition from EU competition authorities, saying it saw "no realistic prospect" of approval for its bid from the European Commission... Since then TNT has undertaken a restructuring programme, cutting costs, selling operations and investing heavily in its road network to hold on to customers in what has been a weak European market for business package deliveries...
(Photo: FedEx warehouse)
... FedEx and TNT Express expect the deal to be completed in the first half of next year and say they are confident any European competition concerns can be overcome this time... The European regional headquarters of the combined companies will remain in the Netherlands, while FedEx has promised to maintain the TNT Express brand "for an appropriate period"... Fedex shares were 3.7% higher to $172.82 in early trade on the New York Stock Exchange, while TNT shares were up about 30% in Europe...
(1st. Photo above: A TNT van) -- Memphis, TENN, USA - BBC News (UK) - 7 April 2015Labels: trucking markets worldwide
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