Tags: ,

UPS, TNT Express Merger To Lead Package Delivery In Europe

03/20/2012 08:29 AM ET

UPS, the world’s largest package delivery company, is getting bigger with its TNT Express take-over bid that is estimated to be $6.85 billion.

It will now make United Parcel Service, Europe’s leading package delivery company over Fed-Ex and DHL.

The multi-billion dollar deal will break down to a payment to TNT Express shareholders of 9.50 euro’s a share, up from last months €9.00 premium offer per share.

Operating out of Europe, TNT also had networks in growing markets such as Asia and Latin America. “Why is TNT very attractive?” said UPS Chief Financial Officer Kurt Kuehn at a press 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.”

Kuehn also explained that with the acquisition, they were hoping over the next 5 years it would boost their international sales by 50%.

“The token 50 cents improvement on last month’s informal proposal is hardly surprising,” said SNS Securities analyst Geert Steens. “TNT Express has since released disappointing results, confirming the sad state of most of its non-European businesses.”

He advised investors to “take what is currently on the table.”

“It’s a difficult day and a great day. Difficult because TNT is a proud company and it is difficult to agree to be acquired,” said TNT Express head Marie-Christine Lombard. “It’s a great day because the combination of the two companies…will be enhanced and really deliver the global leader that will be unequalled.”

Business News

Follow UsSocial

  • FacebookAdd our Facebook page to receive updates and participate in new tools and features. It's a great way to stay connected with all the latest news.
  • TwitterReceive daily bite-sized updates by following us on Twitter. Receive Tweet-sized 140-character updates on your mobile phone device or PC.
  • RSSSubscribe to our daily RSS feed to get the latest national news stories. We offer a feed for every topic including business, entertainment, health, politics, science & technology, travel and more.