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FedEx Buys Rival TNT For $4.8 Billion

FedEx Buys Rival TNT For $4.8 Billion
David J. Bronczek (R), president and chief executive officer of FedEx Express, and Tex Gunning (L), CEO of the Dutch TNT Express attend a press conference in Amsterdam on April 7, 20015, regarding the acquisition of TNT by the US FedEx. US delivery service FedEx has reached a deal to buy Dutch rival TNT Express for 4.4 billion euros (4.8 billion dollars), ramping up its presence in Europe as global e-commerce continues to expand. AFP PHOTO / ANP KOEN VAN WEEL netherlands out (Photo credit should read Koen van Weel/AFP/Getty Images)
KOEN VAN WEEL via Getty Images
David J. Bronczek (R), president and chief executive officer of FedEx Express, and Tex Gunning (L), CEO of the Dutch TNT Express attend a press conference in Amsterdam on April 7, 20015, regarding the acquisition of TNT by the US FedEx. US delivery service FedEx has reached a deal to buy Dutch rival TNT Express for 4.4 billion euros (4.8 billion dollars), ramping up its presence in Europe as global e-commerce continues to expand. AFP PHOTO / ANP KOEN VAN WEEL netherlands out (Photo credit should read Koen van Weel/AFP/Getty Images)

THE HAGUE, Netherlands — 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."

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