UPS to Merge with TNT Express

UPS to Merge with TNT Express

Monday’s statements received from United Parcel Service Inc. (UPS) are claiming that the company is all set to sign an agreement with its Dutch rival, TNT Express NV TNTE. AE, to acquire its control over same following the €5.16 billion ($6.80 billion) deal.

Moreover, the agreement will also push UPS to the position of the leading package-shipping company in Europe. UPS’s plans of paying €9.50 per share for TNT Express can gain them the acquisition over their so-called rivals.

There are majorly four biggest global package shippers in the market today, including UPS, TNT, FedEx and DHL, with TNT being the smallest in all. Unfortunately, the company’s recent struggle is behind its decision of merger, which will enable UPS to enjoy the market-leading position all over Europe with its big domestic U. S. presence and still increasingly expanding Asian business.

UPS and TNT as partners are being expected to generate good annual revenues of €45 billion or even more.

The acquisition over TNT is UPS’s biggest deals till date, says the company. Analyst expectations are also pointing to experience more regulatory pressure over asset sales with the merger. “The token 50 cents improvement on last month’s informal proposal is hardly surprising”, said SNS Securities analyst Mr. Geert Steens. “TNT Express has since released disappointing results, confirming the sad state of most of its non-European businesses”.

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