FedEx will acquire Dutch delivery giant TNT Express for $4.8 billion in an all-cash deal that will vastly expand the American company’s operations across Europe, the company revealed on Tuesday.
“This transaction allows us to quickly broaden our portfolio of international transportation solutions to take advantage of market trends – especially the continuing growth of global e-commerce – and positions FedEx for greater long-term profitable growth,” CEO of FedEx Corp. Frederick Smith said in a public statement of the deal.
TNT Express’ executive board unanimously agreed to the deal which will have FedEx purchase all shares of TNT at €8 ($8.60) a share, but the deal will still have to pass a review from European anti-trust regulators before closing in early 2016. Regulators previously denied UPS a similar buyout deal for TNT in 2013.
“FedEx and TNT Express are confident that anti-trust concerns, if any, can be addressed adequately in a timely fashion,” FedEx noted in a press statement.