FedEx to ac­quire Dutch de­liv­ery firm

Los Angeles Times - - COMPANY TOWN -

FedEx Corp. has agreed to take over Dutch de­liv­ery com­pany TNT Ex­press for $4.8 bil­lion, bol­ster­ing its global busi­ness with an ac­qui­si­tion that ri­val UPS had at­tempted — but failed — to com­plete two years ago.

FedEx said Tues­day that it had reached a con­di­tional agree­ment with TNT Ex­press’ man­age­ment on an all-cash of­fer of $8.75 per TNT share. That rep­re­sents a pre­mium of 33% over the com­pany’s closing price be­fore the deal was an­nounced.

The deal is ex­pected to close in the first half of 2016, pending share­holder ap­proval.

Dutch postal com­pany PostNL, which owns a 14.7% stake in TNT Ex­press, said it sup­ports the bid.

The deal comes two years af­ter United Par­cel Ser­vice Inc. dropped its own $5.6bil­lion takeover bid for TNT Ex­press, cit­ing ob­jec­tions by Euro­pean Union reg­u­la­tors wor­ried about the com­pany be­com­ing too dom­i­nant.

TNT Ex­press and FedEx said they are “con­fi­dent that an­titrust con­cerns, if any, can be ad­dressed ad­e­quately in a timely fash­ion.”

FedEx Chief Ex­ec­u­tive Fred Smith said the deal will en­able the Mem­phis, Tenn., com­pany “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 although 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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