UPS to buy Europe’s No. 2 pack­age de­liv­ery out­fit

The Washington Times Daily - - Business -

AM­S­TER­DAM | United Par­cel Ser­vice Inc. said Mon­day it will buy Nether­lands-based TNT Ex­press NV for $6.77 bil­lion in a cash deal.

At­lanta-based UPS is the world’s largest de­liv­ery com­pany, while TNT, head­quar­tered in Hoofd­dorp, Nether­lands, is the sec­ond-big­gest ex­press mail com­pany in Europe be­hind DHL, which is owned by Ger­many’s Deutsche Post. The com­bi­na­tion will have 475,000 em­ploy­ees world­wide and in­crease UPS’ in­ter­na­tional sales to around 36 per­cent of its to­tal from 26 per­cent at present.

“Why is TNT very at­trac­tive?” asked UPS Chief Fi­nan­cial Of­fi­cer Kurt Kuehn at a news con­fer­ence in Am­s­ter­dam. Be­cause it has “op­er­a­tions in ar­eas where we’re un­der­served. Brazil. Australia. The Mid­dle East. The road and train net­work in Europe.”

He said UPS hopes to fur­ther boost its in­ter­na­tional sales to 50 per­cent in the next five years.

The agreed deal, UPS’ largest ever ac­qui­si­tion, of­fers TNT share­hold­ers $12.6 per share. TNT’S largest share­holder, Dutch postal com­pany Postnl, said it has com­mit­ted to ten­der­ing its 29.9 per­cent stake to UPS.

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