MANILA, Philippines – Memphis-based FedEx Corporation has acquired TNT Express N.V. for €4.4 billion ($4.9 billion), aimed at expanding its footprint.
FedEx said in a statement on Wednesday, May 25, that the acquisition combines the strengths of the companies – the world’s largest air express network and a European road network – which will expand the existing FedEx portfolio and reshape the global transportation and logistics industry.
"This acquisition is a significant accomplishment and marks the beginning of a new era, filled with promise for our people, customers and shareowners,” Frederick Smith, chairman and CEO of FedEx, said.
The acquisition means integration of about 400,000 employees and expanded global offering.
“The timing of this historic event is important, particularly in the current market environment where global e-commerce is growing at double-digit rates,” Smith said. “Adding TNT’s capabilities to our existing world-class suite of services, including GENCO and the recently relaunched FedEx CrossBorder, will further expand the ability of FedEx to support business connections around the world.”
Now that FedEx has acquired TNT Express, the integration process will begin immediately.
FedEx said its track record of successful acquisition integrations in the US will serve the combined companies well to leverage investments in technology, infrastructure, facilities and operational capabilities.
Once the integration is complete, FedEx said it expects customers to enjoy an expanded global offering that draws upon the breadth of expertise from both companies.
“Over our 43-year history, FedEx has repeatedly reinvented and revolutionized the industry, from the first overnight express service backed by a money-back guarantee to the invention of internet shipping,” Smith said.
“And just as we revolutionized the US domestic parcel business through the acquisition and development of what is now FedEx Ground, the acquisition of TNT will change the way customers view FedEx around the world,” he added.
In 2012, talks between FedEx and its chief rival UPS for a $6.8 billion acquisition deal was cancelled when the European Commission prohibited the deal. – Rappler.com