Logistics giant FedEx has made a takeover bid for Netherlands-based rival TNT Express.
TNT Express have agreed to the £3.2 billion all-cash public offer and in a joint statement the two companies said combining would make them a strong global competitor in the transportation and logistics industry and enable them to draw on “considerable and complementary strengths”.
For customers it would mean one joined network, which the two said would “benefit from TNT Express’s strong European road platform and Liege hub and FedEx’s strength in other regions globally, including North America and Asia.”
TNT Express customers would also get access to the FedEx portfolio including global air express, freight forwarding, contract logistics and surface transportation capabilities. FedEx said it expects to strengthen TNT Express with "investment capacity, sector expertise and global scope”.
Frederick Smith, chairman and CEO of FedEx, 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, said: “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.”
The proposed takeover will still have to be approved by European Union regulators.