FedEx expects to complete its takeover of TNT Express on 25th May after declaring its offer unconditional. “Together, we will transform the global transport industry,” said David Bronczek, president and CEO of FedEx Express.
“May 25, 2016 will be a profound moment in the history of these two great companies,” said Bronczek.
“Together, we will transform the global transport industry, connecting even more people and possibilities around the world.”
FedEx received tenders for 88.4 per cent of TNT Express’s shares by 13th May, the closing date for its conditional offer.
FedEx has made a cash offer of €8 per share, valuing the TNT business at some €4.4bn (£3.21 bn, $4.8bn).
It launched the bid in April last year. “This transaction allows us to quickly broaden our portfolio of international transport solutions to take advantage of market trends – especially the continuing growth of global e-commerce – and positions FedEx for greater long-term profitable growth,” said Frederick W Smith, chairman and CEO of FedEx Corp.
However, it has had to overcome a number of regulatory hurdles that have slowed the process. At the end of April, it received unconditional approval from the Chinese Ministry of Commerce (MOFCOM) for its takeover of TNT – the final major obstacle to the deal.
TNT has been preparing for the deal. Earlier this month it said it would sell its overnight distribution subsidiary TNT Innight to the private equity firm Special Situations Venture Partners III, as it wants to concentrate resources on strengthening its core express delivery activities.