The intended FedEx Takeover of TNT Express.
FedEx, the large American delivery company immortalised in Castaway is in touching distance of closing the deal on purchasing TNT Express, this has to be agreed first, where previously a UPS buy out bid was stopped.
The takeover is an all cash buyout totalling in the region of $4.8B or around £3.2B.
So why has FedEx shown such a great interest in TNT Express? Essentially, to increase their presence in Europe. This is one place where FedEx is lacking compared to their rival UPS.
FedEx is predominantly known as a US delivery company with it’s main competitor being UPS, UPS did try to buy TNT two years ago for £4.2B , however when that failed, blocked for fear of monopoly reasons TNT slashed around 4000 jobs.
At present TNT are losing money, on a net income basis, but the purchase by FedEx will increase the share price, which won’t matter too much as FedEx are planning on removing TNT Express from the Amsterdam stock exchange, however this should bolster FedEx on the
As most people are aware, TNT Express have a large presence in Ramsbottom. At this time there has been no response from FedEx with regards to redundancies at that depot, I will update this article should something new come to light.
FedEx have responded saying:
” The parties are committed to making sure that the combination will be properly staffed. Therefore, we will work to avoid reorganisations resulting in significant reductions. The details of how our operations will work together will be determined through the integration planning process. For the foreseeable future, it is business as usual as we go through the necessary steps to close the transaction.”
If The purchase of TNT Express, presuming it is allowed should close in Q1 of 2016, I would expect any changes to TNT Express in Ramsbottom to come in Q2 2016 or even early 2017.
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