Share

FedEx to buy TNT Express for €4.4bn

The Hague - US delivery service FedEx has reached a deal to buy Dutch rival TNT Express for €4.4bn, ramping up its presence in Europe as global e-commerce continues to expand.

The companies "reached conditional agreement on recommended all-cash public offer of €8.00 per ordinary TNT Express share," a joint statement said.

"The transaction represents an implied equity value for TNT Express of €4.4bn".

The offer represents a premium of 33% over the closing share price of 2 April 2015 and a premium of 42% over the average share price over the last three calendar months.

Dutch mail service PostNL, which owns 14.7% of TNT Express, has agreed to the offer.

"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," FedEx CEO Frederick W. Smith was quoted as saying.

TNT Express boss Tex Gunning said the unsolicited offer came at a time of "important transformations" for the company.

"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," he said.

TNT Express operates in more than 200 countries and maintains a leading role in the road freight network in Europe. It currently employs some 65 000 people.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.2%
Rand - Pound
23.87
+0.1%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.12
+0.1%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders