FedEx has entered into an agreement to purchase all issued and outstanding ordinary shares of TNT Express at an offer price of €8.00 per share, giving the deal a total value of €4.4bn. The offer has been unanimously recommended and supported by TNT Express’ Executive and supervisory boards.
PostNL has already signed an irrevocable undertaking with FedEx to tender all TNT Express shares held by it (approximately 14.7%) under the offer. The deal is subject to customary undertakings and conditions and a vote in favour of at TNT Express’ extraordinary general meetings that will be convened in relation to the offer.
Frederick Smith, Chairman and CEO of FedEx said, “We believe that this strategic acquisition will add significant value for FedEx shareowners, team members and customers around the globe. 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 said, “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. Our people and customers can profit from the true global reach and expanded propositions, while with this offer our shareholders can already reap benefits today that otherwise would only have been available in the longer run.”
More to follow.
For more analysis of the Express market please take a look at Ti’s Global Express and Small Parcels 2014 report.
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