Two freight courier giants join forces under new deal work over $6 billion
Global logistics giant FedEX has confirmed its purchase of rival freighting company TNT Express for €4.4 billion (A$6.82 billion) in a move that will see the two merge over time.
FedEx says the deal, which it hopes will “reshape the global transportation and logistics industry”, combines the strengths of both companies in aviation and road transport.
“This acquisition is a significant accomplishment and marks the beginning of a new era, filled with promise for our people, customers and shareowners,” FedEX chairman and CEO Frederick W. Smith says.
“The timing of this historic event is important, particularly in the current market environment where global e-commerce is growing at double-digit rates,” Smith says.
“Adding TNT’s capabilities to our existing world-class suite of services, including GENCO and the recently relaunched FedEx CrossBorder, will further expand the ability of FedEx to support business connections around the world.”
Highlighting its previous successes with the US domestic parcel business, Smith says “the acquisition of TNT will change the way customers view FedEx around the world.”
FedEx executive vice president and CFO Alan B. Graf Jr. says the acquisition will have particular significance for FedEx’s European customers as it will “establish a strong new competitor” in the region.
In a joint media statement, FedEx and TNT Express say they will continue to act as separate entities for customers in the short term, but “once the integration is complete, FedEx expects customers to enjoy an expanded global offering that draws upon the breadth of expertise from both companies.”
“Together, FedEx and TNT Express will continue to make a difference in the lives of people around the world, further supporting the communities in which team members live and work, connecting even more people and possibilities.”
The two companies have a combined workforce of close to 400,000 employees around the world.