FedEx to buy TNT Express for €4.4 billion
FedEx is to buy rival courier company TNT for €4.4 billion, (€8 per share if you’re an investor and interested – a premium of 33% over the closing price of 2 April 2015).
It’s anticipated that full integration of FedEx and TNT Express will deliver substantial operational, commercial, organizational and financial benefits which could not be fully achieved if TNT Express were to continue as a standalone entity with a minority shareholder base.
Although headquartered in the Netherlands, TNT Express is one of the largest couriers in the UK. They have around 8,500 employees, 3500 vehicles and 54 depots around the country. Volumes are around 150 million parcels per year.
It’s worth noting that although TNT Express compete with Royal Mail as well as other couriers, they divested the mail part of their business which has been rebranded as Whistl. Whistl are due a windfall however as they still own a 14.7% stake in TNT Express.
There’s no real surprise to see some consolidation in the courier business, as the past year has shown with Yodel temporarily suspending collections after Black Friday and City Link going bust on Christmas day, margins are tight and couriers are facing ever increasing competition.
It’s expected that the take-over will complete in the first half of next year and that FedEx will keep the TNT Express branding “for an appropriate period”.
They still are the worst courier ever. No matter what happens lol
Every courier is the worst courier ever, just depends who you ask.