FedEx to buy TNT Express

(Image: FedEx)

(Image: FedEx)
(Image: FedEx)
US express parcels giant FedEx is to purchase its Dutch competitor TNT Express for US$4.8bn. The two companies have issued a joint statement saying their boards have decided upon a conditional agreement and expect the deal to be completed in the first half of next year.
The move comes two years after a rival logistics company, United Parcel Service, withdrew from a US$5.2bn bid for TNT Express citing opposition from EU Competition Authorities. FedEx and TNT have said they believe that any EU competition concerns can be resolved for this deal.
FedEx has said it will maintain the TNT Express brand name for an “appropriate period” and the European headquarters of the combined companies will remain in Holland.
The terms of the buy-out enable any potential competitors to many a counter-bid within the next eight weeks and the potential ramifications for the two company’s air freight operations have not been announced.