The Recycler
  • Ninestar Web banner ESG July 2022
  • Katun March Web Advert 2021
  • https://www.ecs-uk-ltd.co.uk/partner-us?utm_source=tr-636x124-8&utm_medium=didiad
  • Biuromax Web banner June 2022
  • Static Control June 2022 Masthead Ad

FedEx to acquire TNT in Europe

FedEx to acquire TNT in Europe

April 7, 2015

The US-based shipping company is looking to take over the Dutch delivery firm and boost its EU base.1shipping

Reuters reported on the bid by FedEx to buy TNT Express for around €4.4 billion ($4.8 billion), noting that the US company’s aim appears to be to “expand Europe deliveries”. FedEx “aim[s] to succeed” where UPS (United Parcel Services) failed in 2013, when it tried to acquire TNT but saw its bid blocked by competition regulators in the EU.

Both FedEx and TNT stated earlier this week that “they did not expect significant opposition from regulators” as UPS “already had a strong European network” when it bid for TNT. FedEx is aiming to offer €8 ($8.68) in cash per ordinary TNT share, with the deal set to give it “access to TNT’s European road delivery network”, as well as TNT customers “access to FedEx’s global distribution platform”.

As a result of the bid, which is 33 percent higher than TNT’s closing price, TNT’s stock “leapt” over 30 percent, with TNT’s supervisory board having “unanimously recommended” accepting the deal. TNT’s largest shareholder – PostNL – also stated that it would tender its 14.7 percent stake to FedEx. UPS is still fighting the EU’s decision to block its bid for TNT, but Reuters noted that “it is unclear when a ruling will come”, and the block was said to be “damaging for TNT”.

The UPS deal would have allowed TNT to adopt “much of UPS’s logistics backbone”, and TNT has seen a loss of market share as well as cost cuts in the two years since. It had also been forced to sell operations and add investment to its road network “in a bid to hold onto customers in a weak European market for business package deliveries”.

The company had seen a 17 percent drop in shares in the last year, and had warned earlier this year that it “expected tough trading to continue” in the western European markets. It reported a net loss of €137 million ($148 million) for the fourth quarter of 2014, and expected at least €250 million ($271 million) in “further restructuring costs” over the next two years.

Analysts gave positive perspectives on the acquisition, with Maarten Bakker, Analyst at ABN Amro, stating that “FedEx has laid on the table an attractive offer price. With FedEx having always been the most logical predator of TNT Express, we see the chances of a competing offer as slim”. In turn, Kepler Cheuvreux Analyst Andre Mulder said that “there is no regulatory risk whatsoever” for the deal, as the offer is “fair” in terms of TNT’s weaker position in the market”.

Mulder added that a rival bid was “unlikely” because it would “risk hitting the 30 percent European market share ceiling” that affected the UPS bid. In contrast, he noted that FedEx has two percent of the market and “almost no overlap with TNT” and its 15 percent share, concluding that “FedEx made a smart move and their rivals can do virtually nothing”.

Categories : City News

Tags : Business Europe Shipping

  • IR Italiana Web ad January 2021
  • Static Control June 2022 Big & Bold Ad
  • Aster July 2022 Web banner
  • Mito July 2022 Web banner
  • GM Technology July 2022 Web banner
  • Apex UStation web banner
  • GPI July 2022 Web Banner
  • ITP Web ad January 2021
  • HYB Web banner
  • Zhono web ad May 2022
  • CET June 2022 Web ad
  • PCL Web ad January 2021
  • CTS New Ad March 2022
  • PCL Web ad January 2021
  • CTS New Ad March 2022
  • CET June 2022 Web ad
  • Zhono web ad May 2022
  • HYB Web banner
  • ITP Web ad January 2021
  • Zhono web ad May 2022
  • ITP Web ad January 2021
  • CTS New Ad March 2022
  • HYB Web banner
  • PCL Web ad January 2021
  • CET June 2022 Web ad

The Recycler, Wittas House, Two Rivers, Station Lane, Witney, OX28 4BH, United Kingdom | Tel: +44 (0) 1993 899800 | Fax : +44 (0) 1993 226899
©2006-2021 The Recycler - Terms & Conditions - Privacy Policy including cookie use

Web design Dorset | Websites by Mark

The Recycler Subscribe Web ad January 2021
The Recycler Subscribe Web ad January 2021