In an effort to expand its European operations, FedEx has reached a “conditional agreement” to buy its Dutch rival TNT Express for €4.4bn. Under the agreement, the US parcels delivery company will offer TNT shareholders €8 per share. The two companies expect the deal to close in the first half of next year. Under the terms of the deal, however, if a competitor makes an offer within the next eight weeks that exceeds FedEx’s bid by 8 percent, TNT can terminate its conditional agreement with FedEx.
“This offer comes at a time of important transformations within TNT Express, and we were fully geared to executing our stand-alone strategy,” said Tex Gunning, chief executive of TNT Express. “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.”
Two years ago, United Parcel Services (UPS) walked away from a €5.2bn offer to buy the Dutch company. The bid had been met by opposition from EU competition authorities, forcing UPS to pull out of the transaction.
