UPS to buy TNT Express for $6.8 billion
Acquisition will make UPS largest shipper in Europe
United Parcel Service or UPS has reached a deal which would allow it to
buy Dutch logistics company TNT Express for around 5.2 billion euro, or
$6.8 billion. UPS will pay 9.5 euros, or $12.5 per share for TNT stock, a
53.7 percent premium, the company said in a statement.
TNT, headquartered in Hoofddorp, Netherlands, is the second-biggest express mail company in Europe behind DHL, which is owned by Germany's Deutsche Post.
TNT, headquartered in Hoofddorp, Netherlands, is the second-biggest express mail company in Europe behind DHL, which is owned by Germany's Deutsche Post. The combination will have 475,000 employees worldwide and increase UPS's international sales to around 36 percent of its total from 26 percent at present.
"Why is TNT very attractive?" said UPS Chief Financial Officer Kurt Kuehn at a press conference in Amsterdam. Because it has "operations in areas where we're underserved. Brazil. Australia. The Middle East. The road and train network in Europe."
He said UPS hopes to further boost its international sales to 50 percent in the next five years.
UPS expects the two firms will earn $65 billion together with 525 to $725 million in pre-tax synergies. UPS will now derive 36 percent of its revenue abroad, up from 26 percent.
"With this combination, both UPS and TNT Express will significantly enhance their ability to serve our combined customers' complex global logistics needs," UPS CEO Scott Davis said. "The additional capabilities and broadened global footprint will support the growth and globalization of our customers' businesses. At the same time, this positions us for future growth, which will benefit our employees and shareowners."
UPS along with its chief rival FedEx were rumored to be interested in acquiring TNT. Analysts presumed the uncertain European macroeconomic situation may delay the deal, or lead to its demise. UPS is the world's largest shipper, followed by FedEx and Deutsche Post.
TNT Express was spun off from TNT NV last May. NV became PostNL NV, a mail company, and plans to sell its 29.9 percent ownership in TNT to UPS.
UPS shares rose 2.3 percent to $80.22 after it announced the acquisition. TNT shares closed at 9.35 euros after a long rally.
© 2012, Catholic Online. Distributed by NEWS CONSORTIUM.
- - -
Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.
Keywords: UPS, TNT, Netherlands, carrier services
Rate This Article
Leave a Comment
More Business & Economics News
- Web developer: Earn $60,000 a year - without college degree or debt
- China, India, Brazil could dominate global investment by 2030
- Unemployment in U.S. comes roaring back - in a big way
- Criminally unfair? Why disgraced Enron CEO Skilling could see freedom sooner than you think
- Berkshire Hathaway Inc. hits first quarter record profit at 51 percent
- China and Japan now hold record amounts of Obama debt
- Does shift to mobile mean Facebook's salad days are done? Not at all
- U.S. annual growth rate slowest since 1929, start of Great Depression
- Prosperity gap between races in U.S. widened during recession
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.