UNITED PARCEL Service will pay $6.85 billion (€5.2 billion) for Dutch peer TNT Express in a deal that will boost the position of the world’s largest package delivery company outside the US.
UPS will become the market leader in Europe and also gain access to TNTs stronger networks in the fast-growing Asian and Latin American markets, increasing the US companys global sales to more than $60 billion (€45 billion) and leaving it with 477,000 employees.
“TNT Express fits into UPS’s long-term network plan,” UPS chief executive Scott Davis told investors. “The deal will boost UPSs revenue outside the US to 36 per cent of total projected annual revenue of $60 billion, up from 26 per cent today.
The acquisition is the largest by far in UPSs 104-year history. The move sharply widens the gap between UPS and No. 2 FedEx, which has a market share of about 3 per cent in Europe.
TNT said yesterday its executive and supervisory boards unanimously supported UPSs offer of €9.5 per share, a premium of nearly 54 per cent, up from an initial bid of €9 per share last month. – (Reuters)
