TNT is to quit the logistics business to focus on its network operations in mail, express and freight management.
Chief executive Peter Bakker said: “While our logistics business is a strong operation with a talented group of employees and good customer relationships, it will no longer fit with our strategic focus going forward. Given industry consolidation, we announce today our intention to sell our logistics business. The focus on networks and the exit of logistics will allow simplification of our organisation. In the next few months a plan aimed at further cost reductions will be put together.”
TNT intends to sell logistics business representing approximately € 3.4 billion in annual revenues and it has appointed Goldman Sachs to assist in the sale. The intended sale is expected to be completed in the second half of 2006.