Package delivery company FedEx Corp will buy Dutch logistics company TNT Express to expand package deliveries in Europe, the companies said.
FedEx said it will pay €8 in cash per ordinary TNT Express share, a premium of 33 per cent over TNT’s closing price of 6 euros on the Amsterdam exchange on April 2nd.
The deal, which has been unanimously recommended and supported by TNT Express’ board, represents an implied equity value for TNT Express of €4.4 billion ($4.8 billion), the companies said in a statement on Tuesday.
Following a failed acquisition by United Parcel Service Inc in 2013, TNT has embarked on a restructuring programme, cutting costs, selling operations and investing heavily in its road network to hold on to customers in a weak European market for business package deliveries.
TNT warned in February that it expected adverse trading conditions to continue in its main western European markets this year.
Reuters