» Subscribe Today!
The Power of Information
Home
The Ledger - EST. 1978 - Nashville Edition
X
Skip Navigation LinksHome > Article
VOL. 39 | NO. 14 | Friday, April 3, 2015

FedEx agrees to take over Dutch rival TNT Express

Print | Front Page | Email this story

THE HAGUE, Netherlands (AP) — American package delivery service FedEx has agreed to take over Dutch rival TNT Express, one of Europe's largest delivery companies, for 4.4 billion euros ($4.8 billion), the companies announced Tuesday, in a move FedEx said will strengthen its business globally.

FedEx Corporation has reached a conditional agreement with TNT Express' management on an all-cash offer of eight euros ($8.75) for each TNT Express share. That represents a premium of 33 percent over the share's April 2 closing price, the companies said.

They said the deal is expected to close in the first half of 2016, pending shareholder approval. Dutch postal company PostNL, which owns a 14.7 percent stake in TNT Express, said it supports the bid.

The planned takeover comes two years after United Parcel Service Inc. dropped a 5.2 billion-euro takeover bid for TNT Express, citing objections by European Union regulators.

TNT Express and FedEx said they are "confident that anti-trust concerns, if any, can be addressed adequately in a timely fashion."

FedEx chairman and CEO Fred Smith said in a statement that the deal "allows us to quickly broaden our portfolio of international transportation solutions to take advantage of market trends — especially the continuing growth of global e-commerce — and positions FedEx for greater long-term profitable growth."

TNT Express CEO Tex Gunning said that while his company did not solicit the takeover bid, "we truly believe that FedEx's proposal, both from a financial and a nonfinancial view, is good news for all stakeholders."

Follow us on Facebook, Twitter & RSS:
Sign-Up For Our FREE email edition
Get the news first with our free weekly email
Name
Email  
TNLedger.com Knoxville Editon
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 0 0 0
MORTGAGES 0 0 0
FORECLOSURE NOTICES 0 0 0
BUILDING PERMITS 0 0 0
BANKRUPTCIES 0 0 0
BUSINESS LICENSES 0 0 0
UTILITY CONNECTIONS 0 0 0
MARRIAGE LICENSES 0 0 0