Package delivery company FedEx Corp will buy Dutch logistics company TNT Express to expand package deliveries in Europe. FedEx said it will pay 8 euros in cash per ordinary TNT Express share, a premium of 33 per cent over TNT’s closing price of 6 euros on the Amsterdam exchange on April 2. The deal, which has been unanimously recommended and supported by TNT Express’ board, represents an implied equity value for TNT Express of 4.4 billion euros ($4.8 billion), the companies said in a statement on Tuesday.
This transaction allows us to quickly broaden our portfolio of international transportation solutions to take advantage of market trends.
FedEx CEO Frederick W. Smith
Following a failed acquisition by United Parcel Service Inc in 2013, TNT has embarked on a restructuring programme, cutting costs, selling operations and investing heavily in its road network to hold on to customers in a weak European market for business package deliveries. TNT Express operates in more than 200 countries and maintains a leading role in the road freight network in Europe. It currently employs some 65,000 people.