this is a big time move! i think European regulators will let this deal sail thru with no problem/s.
Business
FedEx to Buy TNT Express for $4.8 Billion
Purchase of Dutch parcel-delivery firm allows U.S. rival to expand in Europe
A FedEx delivery truck in San Diego, California. The U.S. company on Tuesday said it would buy Dutch rival TNT Express to expand in Europe. Photo: Mike Blake/Reuters
By
Maarten Van Tartwijk
Updated April 7, 2015 2:54 a.m. ET
0 COMMENTS
FedEx Corp. on Tuesday said it would buy Dutch parcel-delivery firm TNT Express NV for about €4.4 billion ($4.8 billion) to expand in Europe.
The deal comes two years after a takeover of TNT by U.S. rival United Parcel Service Inc. for nearly $7 billion fell apart because of antitrust issues, and as the Dutch company struggles to compete with larger rivals, including FedEx.
FedEx and TNT said the all-cash deal had been approved by the Dutch company’s board and that the €8 a share offer price represents a premium of 33% over TNT’s share price on April 2. TNT shares rose 30% to €7.81 in response to the news in early trading Tuesday.
The companies said the combination would transform FedEx’s European capabilities and accelerate global growth. They also said there was a “high level of deal certainty” and that any antitrust concerns “can be addressed adequately in a timely fashion,” without elaborating.
European Union competition regulators blocked the proposed merger between UPS and TNT in 2013 saying the transaction would restrict competition in 15 EU countries. Concessions offered by UPS, including asset sales, were deemed inadequate at the time.
Analysts don’t expect FedEx’s bid for TNT to be hit with the same competition issues that dashed the UPS merger because they say FedEx is smaller in Europe.
Ever since the deal with UPS fell apart, TNT has struggled to find a new stand-alone strategy as it was confronted with sluggish growth and operational setbacks. The company in September issued a profit warning blaming the weak European economy.
FedEx Chairman and Chief Executive Frederick Smith said the deal would allow the U.S. company to “quickly broaden our portfolio of international transportation solutions to take advantage of market trends—especially the continuing growth of global e-commerce.
TNT CEO Tex Gunning said the Dutch company didn’t solicit the deal but that FedEx’s offer was “good news.”
Dutch mail company PostNL NV, which has a 14.7% stake in TNT, said it supports the offer.
http://www.wsj.com/articles/fedex-makes-bid-for-tnt-express-1428384931
_________________________
FedEx to buy rival TNT Express for €4.4bn
US parcels delivery firm FedEx is to buy its Dutch rival TNT Express for €4.4bn ($4.8bn; £3.2bn) as it looks to expand its European operations.
In a joint statement, the companies said both management boards had reached a "conditional agreement".
FedEx has offered shareholders €8 per share, a 33% premium on TNT's closing share price on 2 April.
It comes two years after United Parcel Service (UPS) pulled out of a €5.2bn bid for the Dutch firm.
UPS pulled out of the deal following opposition from EU competition authorities, saying it saw "no realistic prospect" of approval for its bid from the European Commission.
Since then TNT has undertaken a restructuring programme, cutting costs, selling operations and investing heavily in its road network to hold on to customers in what has been a weak European market for business package deliveries.
FedEx and TNT Express expect the deal to be completed in the first half of next year and say they are confident any European competition concerns can be overcome this time.
The European regional headquarters of the combined companies will remain in the Netherlands, while FedEx has promised to maintain the TNT Express brand "for an appropriate period".
Tex Gunning, chief executive 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."
However, the terms of the takeover allow for a competitor to make an offer within the next eight weeks and for the current deal to be terminated if that offer exceeds the existing proposal by 8%.
TNT warned in February that it expected adverse trading conditions to continue in its main western European markets this year, as it reported a €196m annual loss on revenues which fell 3.2% to €6.6bn.
http://www.bbc.com/news/business-32200600
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FedEx agrees to buy TNT Express for €4.4bn
Claer Barrett in London and Jennifer Thompson in Hong Kong
©Bloomberg
FedEx has struck a deal to acquire struggling rival TNT Express for €4.4bn, ramping up the US parcel delivery group’s presence in Europe and sending shares of the Dutch company up 30 per cent.
Both sides said on Tuesday the combined company would create “a strong third competitor in Europe to take on DHL and UPS”, anticipating no repeat of European regulatory issues that scuppered a previous takeover attempt by UPS in 2013.
“You have two strong companies and two weaker ones, now there will be three big ones who will fight very hard for customers,” said Antony Burgmans, chairman of TNT.
“What the European Commission would like to see is greater competition — it’s better for the customer,” said David Bronczek, FedEx chief executive . He added he was “confident” that regulatory hurdles could be cleared, though it could take one year for the deal to finally complete. A break fee of €200m will be payable to TNT if it does not, the companies said.
The consolidation comes as Europe’s delivery sector undergoes a scramble for market share, putting pressure on prices and profitability as rivals discount to win customers.
TNT would have to sell its airline operations as part of the agreement. FedEx, which has more than 660 aircraft in its global fleet, said that TNT’s European road network — which connects over 40 countries through 19 road hubs and over 550 delivery depots — would be “highly complementary”.
In a joint statement the companies said they had reached “conditional agreement” on a cash offer by FedEx of €8 a share, giving TNT an equity value of €4.4bn.
The offer is 33 per cent higher than TNT Express’ closing share price last Thursday before the Easter long weekend, and a 42 per cent premium compared to the average over the past three months. The abortive €5.2bn UPS bid had offered €9.50 a share.
“This is a much simpler deal than the UPS deal,” Mr Burgmans said. “The overlap [with UPS] was significant. This means the [cost saving] synergies will be less, which is reflected in the price, but the strategic fit is better.”
FedEx delivers around 10.5m shipments globally every day, compared to TNT’s 1m. The US group has been growing its presence in Europe, opening around 100 delivery stations across 11 European countries since 2011.
DHL had a 19 per cent market share in Europe based on 2013 industry data, compared to UPS on 16 per cent, TNT on 12 per cent and FedEx on 5 per cent, according to Allan Smylie, transport analyst at Davy.
PostNL, which was spun out from TNT Express in 2011 and holds a 14.7 per cent stake in the company, supports the takeover, according to the statement.
Tex Gunning, chief executive of TNT Express, said the offer comes “at a time of important transformations within TNT Express” and added that “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.”
FedEx and TNT Express expect the deal, which has been unanimously recommended and supported by the TNT board, to be completed by mid-2016.
Analysts were hopeful that the FedEx deal would succeed. “With FedEx, there will be fewer competition issues,” said Marc Zwartsburg, at ING. “We also do not expect a competitive bid from UPS.”
Shares in TNT shares opened 30 per cent higher at €7.80.
TNT has struggled since European regulators blocked the proposed takeover by UPS, and reported a €137m loss for the final quarter of 2014 blaming mounting restructuring costs.
The Dutch group began scaling back its global operations in 2013 to concentrate on its core European market, but warned on profits as the eurozone economy stuttered.
It warned of “adverse trading conditions” in its core western Europe markets in 2015, and told investors not to expect an improvement in performance until 2016.
TNT reported revenues of €6.7bn ($7.3bn) in 2014 with around two-thirds generated in Europe; a fraction of the $47bn (€43bn) turnover of its US rival.
FedEx posted a better than expected 53 per cent rise in net income to $580m for the December to February quarter and said it expected records results for both the March to May quarter and the year to May.
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Business
FedEx to Buy TNT Express for $4.8 Billion
Purchase of Dutch parcel-delivery firm allows U.S. rival to expand in Europe
A FedEx delivery truck in San Diego, California. The U.S. company on Tuesday said it would buy Dutch rival TNT Express to expand in Europe. Photo: Mike Blake/Reuters
By
Maarten Van Tartwijk
Updated April 7, 2015 2:54 a.m. ET
0 COMMENTS
FedEx Corp. on Tuesday said it would buy Dutch parcel-delivery firm TNT Express NV for about €4.4 billion ($4.8 billion) to expand in Europe.
The deal comes two years after a takeover of TNT by U.S. rival United Parcel Service Inc. for nearly $7 billion fell apart because of antitrust issues, and as the Dutch company struggles to compete with larger rivals, including FedEx.
FedEx and TNT said the all-cash deal had been approved by the Dutch company’s board and that the €8 a share offer price represents a premium of 33% over TNT’s share price on April 2. TNT shares rose 30% to €7.81 in response to the news in early trading Tuesday.
The companies said the combination would transform FedEx’s European capabilities and accelerate global growth. They also said there was a “high level of deal certainty” and that any antitrust concerns “can be addressed adequately in a timely fashion,” without elaborating.
European Union competition regulators blocked the proposed merger between UPS and TNT in 2013 saying the transaction would restrict competition in 15 EU countries. Concessions offered by UPS, including asset sales, were deemed inadequate at the time.
Analysts don’t expect FedEx’s bid for TNT to be hit with the same competition issues that dashed the UPS merger because they say FedEx is smaller in Europe.
Ever since the deal with UPS fell apart, TNT has struggled to find a new stand-alone strategy as it was confronted with sluggish growth and operational setbacks. The company in September issued a profit warning blaming the weak European economy.
FedEx Chairman and Chief Executive Frederick Smith said the deal would allow the U.S. company to “quickly broaden our portfolio of international transportation solutions to take advantage of market trends—especially the continuing growth of global e-commerce.
TNT CEO Tex Gunning said the Dutch company didn’t solicit the deal but that FedEx’s offer was “good news.”
Dutch mail company PostNL NV, which has a 14.7% stake in TNT, said it supports the offer.
http://www.wsj.com/articles/fedex-makes-bid-for-tnt-express-1428384931
_________________________
FedEx to buy rival TNT Express for €4.4bn
- 1 hour ago
- From the section Business
US parcels delivery firm FedEx is to buy its Dutch rival TNT Express for €4.4bn ($4.8bn; £3.2bn) as it looks to expand its European operations.
In a joint statement, the companies said both management boards had reached a "conditional agreement".
FedEx has offered shareholders €8 per share, a 33% premium on TNT's closing share price on 2 April.
It comes two years after United Parcel Service (UPS) pulled out of a €5.2bn bid for the Dutch firm.
UPS pulled out of the deal following opposition from EU competition authorities, saying it saw "no realistic prospect" of approval for its bid from the European Commission.
Since then TNT has undertaken a restructuring programme, cutting costs, selling operations and investing heavily in its road network to hold on to customers in what has been a weak European market for business package deliveries.
FedEx and TNT Express expect the deal to be completed in the first half of next year and say they are confident any European competition concerns can be overcome this time.
The European regional headquarters of the combined companies will remain in the Netherlands, while FedEx has promised to maintain the TNT Express brand "for an appropriate period".
Tex Gunning, chief executive 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."
However, the terms of the takeover allow for a competitor to make an offer within the next eight weeks and for the current deal to be terminated if that offer exceeds the existing proposal by 8%.
TNT warned in February that it expected adverse trading conditions to continue in its main western European markets this year, as it reported a €196m annual loss on revenues which fell 3.2% to €6.6bn.
http://www.bbc.com/news/business-32200600
____________
FedEx agrees to buy TNT Express for €4.4bn
Claer Barrett in London and Jennifer Thompson in Hong Kong
FedEx has struck a deal to acquire struggling rival TNT Express for €4.4bn, ramping up the US parcel delivery group’s presence in Europe and sending shares of the Dutch company up 30 per cent.
Both sides said on Tuesday the combined company would create “a strong third competitor in Europe to take on DHL and UPS”, anticipating no repeat of European regulatory issues that scuppered a previous takeover attempt by UPS in 2013.
“You have two strong companies and two weaker ones, now there will be three big ones who will fight very hard for customers,” said Antony Burgmans, chairman of TNT.
“What the European Commission would like to see is greater competition — it’s better for the customer,” said David Bronczek, FedEx chief executive . He added he was “confident” that regulatory hurdles could be cleared, though it could take one year for the deal to finally complete. A break fee of €200m will be payable to TNT if it does not, the companies said.
The consolidation comes as Europe’s delivery sector undergoes a scramble for market share, putting pressure on prices and profitability as rivals discount to win customers.
TNT would have to sell its airline operations as part of the agreement. FedEx, which has more than 660 aircraft in its global fleet, said that TNT’s European road network — which connects over 40 countries through 19 road hubs and over 550 delivery depots — would be “highly complementary”.
In a joint statement the companies said they had reached “conditional agreement” on a cash offer by FedEx of €8 a share, giving TNT an equity value of €4.4bn.
The offer is 33 per cent higher than TNT Express’ closing share price last Thursday before the Easter long weekend, and a 42 per cent premium compared to the average over the past three months. The abortive €5.2bn UPS bid had offered €9.50 a share.
“This is a much simpler deal than the UPS deal,” Mr Burgmans said. “The overlap [with UPS] was significant. This means the [cost saving] synergies will be less, which is reflected in the price, but the strategic fit is better.”
FedEx delivers around 10.5m shipments globally every day, compared to TNT’s 1m. The US group has been growing its presence in Europe, opening around 100 delivery stations across 11 European countries since 2011.
DHL had a 19 per cent market share in Europe based on 2013 industry data, compared to UPS on 16 per cent, TNT on 12 per cent and FedEx on 5 per cent, according to Allan Smylie, transport analyst at Davy.
PostNL, which was spun out from TNT Express in 2011 and holds a 14.7 per cent stake in the company, supports the takeover, according to the statement.
Tex Gunning, chief executive of TNT Express, said the offer comes “at a time of important transformations within TNT Express” and added that “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.”
FedEx and TNT Express expect the deal, which has been unanimously recommended and supported by the TNT board, to be completed by mid-2016.
Analysts were hopeful that the FedEx deal would succeed. “With FedEx, there will be fewer competition issues,” said Marc Zwartsburg, at ING. “We also do not expect a competitive bid from UPS.”
Shares in TNT shares opened 30 per cent higher at €7.80.
TNT has struggled since European regulators blocked the proposed takeover by UPS, and reported a €137m loss for the final quarter of 2014 blaming mounting restructuring costs.
The Dutch group began scaling back its global operations in 2013 to concentrate on its core European market, but warned on profits as the eurozone economy stuttered.
It warned of “adverse trading conditions” in its core western Europe markets in 2015, and told investors not to expect an improvement in performance until 2016.
TNT reported revenues of €6.7bn ($7.3bn) in 2014 with around two-thirds generated in Europe; a fraction of the $47bn (€43bn) turnover of its US rival.
FedEx posted a better than expected 53 per cent rise in net income to $580m for the December to February quarter and said it expected records results for both the March to May quarter and the year to May.
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