UPS has reached agreement to buy TNT Express after its offer of 9.50 euros per share was accepted
The deal represents a premium of 53.7 per cent on the TNT share price before the offer was announced. It values TNT Express at 5.16 bn euros.
TNT’s largest shareholder PostNL which holds 29.8 per cent of the TNT shares, has agreed to sell its shareholding under the terms of the deal.
[asset_ref id=”508″] UPS chief Scott Davis
UPS said the deal would result in a group with worldwide sales of more than 45bn euros and the integration of the TNT European road network would expand UPS’s logistics services in Europe.
UPS intends to finance the 5.16bn euro offer with 2.3bn euros in existing cash on balance sheet and through new debt arrangements. It expects to find annual savings of 400 to 550m euros by the end of the fourth year of integration.
TNT customers will have access to UPS’s comprehensive US network as well as its portfolio of freight forwarding and distribution services.
As a result of the deal, some 36 per cent of UPS’s sales will be outside the US – up from 26 per cent today.
Scott Davis, chairman and chief executive of UPS, said: “With this combination, both UPS and TNT Express will significantly enhance their ability to serve our combined customers’ complex global logistics needs. 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.”
And TNT chief Marie-Christine Lombard said: “To my 77,000 colleagues I say that the combination will create unique opportunities for development and growth in which we can participate.”