By Maarten Van Tartwijk
FedEx Corp. on Tuesday said it would buy Dutch parcel-delivery
firm TNT Express NV for about EUR4.4 billion ($4.8 billion) to
expand in Europe.
The deal comes two years after a takeover of TNT by U.S. rival
United Parcel Service Inc. for nearly $7 billion fell apart because
of antitrust issues, and as the Dutch company struggles to compete
with larger rivals, including FedEx.
FedEx and TNT said the all-cash deal had been approved by the
Dutch company's board and that the EUR8 a share offer price
represents a premium of 33% over TNT's share price on April 2.
The companies said the combination would transform FedEx's
European capabilities and accelerate global growth. They also said
there was a "high level of deal certainty" and that any antitrust
concerns "can be addressed adequately in a timely fashion," without
elaborating.
European Union competition regulators blocked the proposed
merger between UPS and TNT in 2013 saying the transaction would
restrict competition in 15 EU countries. Concessions offered by
UPS, including asset sales, were deemed inadequate at the time.
Ever since the deal with UPS fell apart, TNT has struggled to
find a new stand-alone strategy as it was confronted with sluggish
growth and operational setbacks. The company in September issued a
profit warning blaming the weak European economy.
FedEx Chairman and CEO Frederick Smith said the deal would allow
the U.S. company to "quickly broaden our portfolio of international
transportation solutions to take advantage of market
trends--especially the continuing growth of global e-commerce.
TNT Chief Executive Tex Gunning said the Dutch company didn't
solicit the deal but that FedEx's offer was "good news."
Dutch mail company PostNL NV, which has a 14.7% stake in TNT,
said it supports the offer.
Write to Maarten Van Tartwijk at maarten.vantartwijk@wsj.com
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