FedEx acquisition of TNT Express nears completion

Parcel giant FedEx declared its $4.8 billion offer for the Netherlands-based global package delivery firm “unconditional,” meaning all predetermined terms have been either met or waived, according to a joint statement from the companies.    Parcel giant FedEx Corp declared its $4.8 billion acquisition offer for the Netherlands-based global package delivery firm TNT Express “unconditional” in a joint statement from the companies Wednesday.
   The announcement means that any and all predetermined conditions for the purchase have been either met or waived.
   The deal cleared its final regulatory hurdle last month, securing approval from the Chinese Ministry of Commerce after similar authorizations from the competition authorities of the European Union, United States and Brazil.
   In connection with the offer, FedEx has tendered 484,982,585 shares of TNT stock at the offer price of 8 euros per share. The aggregate value of the tendered shares comes to just under 3.88 billion euros (U.S. $4.37 billion).
   The companies said shareholder payment of the offer price will take place on May 25, 2016, at which time FedEx will officially own 88.4 percent of the aggregate issued and outstanding ordinary share capital of TNT Express.
   “We are pleased with the outcome of the public share offer,” 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. Together, we will transform the global transportation industry, connecting even more people and possibilities around the world.”
   The purchase is expected to give FedEx a firm foothold in Europe, where it currently runs a distant third to rivals UPS and DHL. The company will be able to leverage TNT’s expansive European road network and its hub in Liege, Belgium in combination with FedEx’s international air hub in Paris.
   FedEx has more extensive global forwarding and contract logistics businesses, operations in Asia and a dominant position in the U.S. market, and the tie-up would give TNT customers access to more global services in addition to enhancing access to Europe for FedEx customers.