FedEx has agreed to acquire Dutch logistics company TNT Express for $4.8bn to strengthen package delivery in Europe.
Both the companies have signed a conditional agreement, under which FedEx will pay €8 in cash per TNT Express ordinary share.
The offer price represents a premium of 33% premium over TNT's closing price on the Amsterdam exchange on 2 April 2015 and a premium of 42% over the average volume weighted price per TNT Express share of $6.14 (€5.63) over the last three calendar months.
The combined entity will leverage TNT Express' strong European network and FedEx's strength in other regions across the globe including its network in North America and Asia.
FedEx chairman Frederick W. Smith 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."
The companies said in a joint statement that TNT customers can take advantage of FedEx's global air express, freight forwarding, contract logistics and surface transportation capabilities while FedEx will strengthen TNT Express with its investment capacity, sector expertise and global operations.
TNT Express CEO Tex Gunning 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."
TNT Express could not finalize acquisition deal with FedEx competitor United Parcel Services in 2013 after European regulators blocked the deal.
The offer is likely to be closed in the first half of 2016.
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