FedEx Corp has launched a $6.2 billion bid to buy package delivery company TNT Express.
In a joint press release, FedEx and TNT announced that FedEx will offer $11.39 in cash per ordinary TNT Express share. The deal would give the US firm access to TNT's European road network and give TNT customers access to FedEx's global distribution platform.
The price represents a premium of 33 per cent over TNT's closing price of $8.54 on the Amsterdam exchange on 2 April.
TNT Express’ supervisory board has unanimously recommended the deal. TNT's largest shareholder, PostNL said it would tender its 14.7 per cent stake in TNT to the FedEx offer.
“This offer comes at a time of important transformations within TNT Express and we were fully geared to executing our stand-alone strategy. 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. 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,” said TNT CEO, Tex Gunning.
The companies said they did not expect significant antitrust opposition and see the deal closing in the first half of 2016.
Upon the deal closing, the companies will be integrated, with the TNT Express name maintained for ‘an appropriate period’.
FedEx Chief Executive, Frederick Smith, said the deal would “quickly broaden our portfolio of international” offerings.