A PYMNTS Company

EU: Fedex agrees to buy TNT Express for €4.4 billion

By  |  April 7, 2015

FedEx Corp is to buy Dutch package delivery firm TNT Express for an agreed 4.4 billion euros ($4.8 billion), stepping up the challenge to rivals United Parcel Service and Deutsche Post in Europe.

European regulators blocked a 2013 takeover of TNT by UPS due to concerns it would stifle competition, but analysts and executives said on Tuesday FedEx, with its strong air fleet, would complement TNT’s sizeable European road network.

“Europe, despite the fact that there has been low growth, is still an enormous market both for import and export,” FedEx Corp. Chief Executive Fred Smith told analysts.

TNT gives FedEx access to pan-European service and the domestic UK and French markets, areas where it is not yet a big player, Smith said, while TNT customers will get access to FedEx’s global distribution platform.

 

Full Content: The Street

 

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.