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| FedEx Agrees to Acquire TNT Express in $4.8 Billion Deal | FedEx Agrees to Acquire TNT Express in $4.8 Billion Deal |
| (about 1 hour later) | |
| LONDON — FedEx Corporation said on Tuesday that it had agreed to acquire the Dutch delivery company TNT Express in an all-cash deal that values TNT at 4.4 billion euros, or about $4.8 billion. | LONDON — FedEx Corporation said on Tuesday that it had agreed to acquire the Dutch delivery company TNT Express in an all-cash deal that values TNT at 4.4 billion euros, or about $4.8 billion. |
| The transaction would greatly expand the American delivery giant’s presence in Europe and comes less than two years after European regulators blocked a bid for TNT by United Parcel Service, its global delivery rival. | |
| FedEx would pay €8 a share in cash for each outstanding share of TNT, representing a 33 percent premium on its closing price on Thursday, the last day it was traded before the Easter holiday in Europe. Shares of TNT jumped 30.6 percent to €7.84 in early trading in Amsterdam on Tuesday. | FedEx would pay €8 a share in cash for each outstanding share of TNT, representing a 33 percent premium on its closing price on Thursday, the last day it was traded before the Easter holiday in Europe. Shares of TNT jumped 30.6 percent to €7.84 in early trading in Amsterdam on Tuesday. |
| Frederick W. Smith, the FedEx chairman and chief executive, said in a news release that the 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.” | Frederick W. Smith, the FedEx chairman and chief executive, said in a news release that the 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.” |
| TNT’s executive and supervisory boards have unanimously recommended that shareholders accept the deal, which is expected to close in the first half of 2016. | TNT’s executive and supervisory boards have unanimously recommended that shareholders accept the deal, which is expected to close in the first half of 2016. |
| PostNL, the Dutch mail service that owns 14.7 percent of TNT, has agreed to support the deal. | |
| “This offer comes at a time of important transformations within TNT Express, and we were fully geared to executing our stand-alone strategy,” Tex Gunning, the chief executive of TNT, said in a news release. “But while we did not solicit an acquisition, we truly believe that FedEx’s proposal, both from a financial and a nonfinancial view, is good news for all stakeholders.” | “This offer comes at a time of important transformations within TNT Express, and we were fully geared to executing our stand-alone strategy,” Tex Gunning, the chief executive of TNT, said in a news release. “But while we did not solicit an acquisition, we truly believe that FedEx’s proposal, both from a financial and a nonfinancial view, is good news for all stakeholders.” |
| UPS also tried to buy TNT, but it dropped its $6.9 billion bid in 2013 after European Union regulators blocked the deal, concerned that it would limit choice for European shipping customers and lead to price increases. | UPS also tried to buy TNT, but it dropped its $6.9 billion bid in 2013 after European Union regulators blocked the deal, concerned that it would limit choice for European shipping customers and lead to price increases. |
| The FedEx deal also requires regulatory approval, and the companies said they were “confident” that any antitrust concerns could be addressed. As part of the transaction, TNT has agreed to sell its airline operations. | The FedEx deal also requires regulatory approval, and the companies said they were “confident” that any antitrust concerns could be addressed. As part of the transaction, TNT has agreed to sell its airline operations. |
| FedEx said that it intended to finance the offer through cash as well as existing and new debt. | FedEx said that it intended to finance the offer through cash as well as existing and new debt. |
| Founded in 1946, TNT, based in Hoofddorp, the Netherlands, delivers documents, packages and freight to more than 200 countries. It has 65,000 employees and posted revenue of €6.7 billion in 2013. It handles about one million shipments a day. | Founded in 1946, TNT, based in Hoofddorp, the Netherlands, delivers documents, packages and freight to more than 200 countries. It has 65,000 employees and posted revenue of €6.7 billion in 2013. It handles about one million shipments a day. |
| Following the deal, FedEx will select three new members of the TNT supervisory board. FedEx also expects that Mr. Gunning and Maarten de Vries, its chief financial officer, will remain members of TNT’s executive board after the transaction. | |
| Based in Memphis, FedEx is one of the world’s largest providers of delivery services. The company posted revenue of $45.6 billion in 2014 and has more than 300,000 employees. It handles more than 10.5 million shipments a day. | Based in Memphis, FedEx is one of the world’s largest providers of delivery services. The company posted revenue of $45.6 billion in 2014 and has more than 300,000 employees. It handles more than 10.5 million shipments a day. |
| FedEx is being advised by JPMorgan Chase and the law firms NautaDutilh and Baker & McKenzie, while TNT is being advised by Goldman Sachs, Lazard and the law firm Allen & Overy. | FedEx is being advised by JPMorgan Chase and the law firms NautaDutilh and Baker & McKenzie, while TNT is being advised by Goldman Sachs, Lazard and the law firm Allen & Overy. |