FedEx to buy TNT Express for £3.2 billion
FedEx has agreed to buy TNT Express in an all-cash deal worth £3.2 billion. The two companies have reached a conditional agreement, with the deal combining the strength of the TNT Express European road platform and Liege hub and FedEx’s strength in other regions globally, including North America and Asia.
Frederick W. Smith, chairman and CEO of FedEx Corp said: “This transaction 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.”
Tex Gunning, CEO of TNT Express, added: “This offer comes at a time of important transformations within TNT Express and we were fully geared to executing our stand-alone strategy. But while we did not solicit an acquisition, we truly believe that FedEx’s proposal, both from a financial and a non-financial view, is good news for all stakeholders.”
The combined companies will be a strong global competitor in the transportation and logistics industry, drawing on the considerable and complementary strengths of both FedEx and TNT Express.
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