FedEx launches its €4.4 billion bid for TNT Express today, giving shareholders until 30th October to make up their minds on the deal.
FedEx has made a cash offer of €8 per share, valuing the TNT business at some €4.4bn (£3.21 bn, $4.8bn).
TNT Express will hold an extra-ordinary meeting on 5th October to discuss the offer. PostNL, the Dutch post office, which holds 14.7 per cent of TNT shares is supporting the deal.
“This is an important transaction for FedEx, and the offer represents positive news for all stakeholders,” said David Binks, regional president Europe at FedEx Express.
“We believe the combination will provide significant value to both companies and both sets of shareholders. FedEx is delighted by the unanimous support from the executive board and the supervisory board.”
On completion of the deal, Binks will join the TNT Express executive board and chief executive officer. Tex Gunning, currently CEO of TNT, will serve on an integration committee for six months before leaving the group.
Last month, the European Commission launched an in-depth investigation into the deal. It said it was concerned that in a number of European markets for international express and regular small package deliveries, the merged entity would face insufficient competitive constraints from the only two remaining large integrators – UPS and DHL.
FedEx and TNT argue that the combination’s customers would enjoy access to an enhanced, integrated global network. This network would benefit from the combined strength of TNT’s European road platform and Liege hub and FedEx’s strength in other regions globally, including North America and Asia.
In addition, TNT customers would benefit from the combination’s comprehensive range of services, and FedEx would strengthen TNT with investment capacity, sector expertise and global scope.