US company FedEx has officially launched its €4.4 billion offer for Dutch rival TNT Express, stating it is optimistic the deal will get the necessary regulatory approval.
According to Market Watch, the offer of €8 a share will expire on 30 October and is subject to a minimum acceptance level of 95 per cent of TNT shares.
The threshold can be lowered to 80 per cent if TNT's shareholders approve the takeover at a shareholders meeting in early October.
Market Watch also reported that FedEx hit a bump last month after the European Commission said it opened an in-depth investigation into the transaction, amid concerns about the combined group's dominance in the international delivery of small packages in some European markets.
FedEx, however, reacted by stating that the deal “presents a pro-competitive proposition for the provision of small package delivery services within and outside Europe.”
“This is an important transaction for FedEx, and the offer represents positive news for all stakeholders,” added David Binks, Regional President Europe at FedEx Express, in a press release.
“We believe the combination will provide significant value to both companies and both sets of shareholders.”
On completion of the deal, Binks will join the TNT Express executive board. Tex Gunning, currently CEO of TNT, will serve on an integration committee for six months before leaving the group.