FedEx And TNT Express Want €4.4bn Takeover

FedEx has announced a €4.4bn (£3.3bn) takeover of Dutch rival TNT Express in a deal aimed at boosting its presence in Europe.

The companies said they had "reached conditional agreement on a recommended all-cash public offer of €8 per ordinary TNT Express share.

"The transaction represents an implied equity value for TNT Express of €4.4bn."

FedEx, which employs 325,000 people worldwide, said its offer represented a 33% premium on the closing share price of 2 April.

Dutch mail service PostNL (Hanover: TNTC.HA - news) , which owns a 14.7% stake in TNT Express, said it had agreed to the bid, which remained subject to full shareholder agreement and regulatory approval.

FedEx said it did not expect competition concerns to arise.

A United Parcel Service (Xetra: UPAB.DE - news) (UPS) offer for TNT was blocked by regulators on competition grounds two years ago but UPS, unlike FedEx, already had a strong European operation.

TNT Express boss Tex Gunning said the unsolicited offer came at a time of "important transformations" for the company.

He said: "Our people and customers can profit from the true global reach and expanded propositions, while with this offer our shareholders can already reap benefits today that otherwise would only have been available in the longer run."

His FedEx counterpart, Frederick W Smith, said: "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."

TNT Express operates in more than 200 countries and maintains a leading role in the road freight network in Europe.

It currently employs some 65,000 people including 8,500 staff in the UK at headquarters in Warwickshire and at 54 depots across the country.

The joint (NasdaqCM: JYNT - news) statement said the combined companies would "co-operate to avoid any significant redundancies in the global or Dutch work forces."

Royal Mail (LSE: RMG.L - news) shares rose by 2% today as a result of the latest consolidation in the European parcels sector.