DUBAI: US logistics firm FedEx announced its €4.4 billion takeover of Dutch competitor TNT on Wednesday.
Both companies operate in the UAE.
The European Union approved the proposed takeover in January. FedEx declared its unconditional offer last Wednesday, May 18. The firms said in a statement that the acquisition combines the strengths of the companies – the world’s largest air express network and an unparalleled European road network, which will expand the existing FedEx portfolio and reshape the global transportation and logistics industry.
"This acquisition is a significant accomplishment and marks the beginning of a new era, filled with promise for our people, customers and shareowners,” said Frederick W. Smith, Chairman and CEO of FedEx. “We are proud to celebrate the joining of two iconic companies and the approximately 400,000 team memberswho are committed to serving customers around the world.
“The timing of this historic event is important, particularly in the current market environment where global e-commerce is growing at double-digit rates,” Smith added. “Adding TNT’s capabilities to our existing world-class suite of services, including GENCO and the recently relaunched FedEx CrossBorder, will further expand the ability of FedEx to support business connections around the world.”
The integration process will begin immediately. The FedEx says its track record of successful acquisition integrations in the US and globally will serve the combined companies well to leverage investments in technology, infrastructure, facilities and operational capabilities.
In the near term, customers can expect to interact with each company as they always have.
