Exel gets approval for takeover of Tibbett & Britten

Exel gets approval for takeover of Tibbett & Britten    Exel plc, the London-based international logistics and forwarding group, said Wednesday it has received regulatory competition clearance and required shareholder approvals for its takeover of the British contract logistics provider Tibbett & Britten plc.
   The European Commission said it has approved the proposed acquisition of Tibbett & Britten through a public offer because it does not pose any competition concerns. The Brussels-based executive said the United Kingdom was considered to be the only market which raised possible competition concerns as a result of the combined market share of about 25 percent in this market following a takeover. But the EC said there are opportunities for new entry and expansion in contract logistics services, and that barriers to entry and expansion are low.
   “Contracts are generally of short duration and assets are usually owned by the customers,” the EC said. “Moreover, the customers are large and sophisticated buyers who normally have a multisource approach and maintain a significant part of logistic services in-house.”
   Exel offered '6.68 ($12.18) in cash for each Tibbett & Britten share, valuing the company at about '328 million ($598 million).
   The EC has also recently approved the purchase of Swedish forwarder Wilson by TPG N.V., the Dutch mail, express and logistics provider, for about SEK2.35 billion ($310 million).
   Exel said it will finance the takeover with a combination of own resources and bank facilities. The company estimates that the acquisition of Tibbett & Britten will add about 70 percent to its contract logistics revenue in both continental Europe and the Americas, and lower costs by about '15-20 million ($27-36 million) a year.
   Exel will commence integration of Tibbett & Britten immediately and is looking to complete most of this process by Dec. 31, with the majority of Tibbett & Britten’s business being amalgamated within the global Exel brand.
   Exel is the result of the merger of Ocean and NFC four years ago, and the company has since acquired other companies.