FedEx Corporation, the parent firm of FedEx has acquired TNT Express for €4.4 billion giving it the world’s largest air express network and an unparalleled road network, which will expand the existing FedEx portfolio and reshape the global transportation and logistics industry.
The deal will also see FedEx take on competitor DHL globally and might even dwarf its efforts in some markets.
“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.
TNT Express team will join FedEx. The joining of two iconic companies will give FedEx approximately 400,000 team members 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.
With an over 43 year history, FedEx has repeatedly reinvented and revolutionized the industry, from the first overnight express service backed by a money-back guarantee to the invention of internet shipping. The firm is now growing its the U.S. domestic parcel business through ths acquisition and development of what is now FedEx Ground.
“We believe that this strategic acquisition will add significant value for FedEx shareowners, team members and customers around the globe, particularly in Europe where we will establish a strong new competitor,” said Alan B. Graf, Jr., FedEx Executive Vice President and Chief Financial Officer. “The TNT team members bring 70 years of diverse experience, which combined with that of FedEx team members, will make this integration a success.”
The integration process will begin immediately and TNT Express will be renamed FedEx Ground in the U.S. and globally.
