UPS pays 5.16 bn euros for Dutch firm to lead in Europe
UPS pays USD6.79bn for TNT Express, becoming the leading express parcel and shipping operation in Europe.
THE HAGUE - United Parcel Service is to pay 5.16 billion euros ($6.79 billion) for Dutch firm TNT Express, becoming the dominant express parcel and shipping operation in Europe, the companies said on Monday.
"The transaction will recreate a global leader in the logistics industry with more than 45 billion euros in annual revenues and an enhanced, integrated global network," the companies said in statements.
The all-cash offer amounts to €9.5 per ordinary share which represents a premium of 53.7% to the share price before the announcement of discussions between the two groups.
"The Executive and Supervisory Boards of TNT Express unanimously intend to support and recommend the offer," the statement said.
Last month TNT Express said it had rejected a €4.9bn ($6.4bn) unsolicited offer by UIPS, a US-based parcel and logistics giant, but remained in discussions.
The deal, which still needs approval from competition authorities, will result in the group's combined revenue generated outside the United States jumping to 36 percent, UPS said.
It "underlined UPS' longstanding commitment to Europe, where it has maintained a presence since 1976" and "enhances UPS's existing position in fast growing regions such as Asia-Pacific and Latin America".
TNT Express' shareprice jumped by 1.83% to €9.52 per share in early trading on the Amsterdam Stock Exchange (AEX).
Furthermore, the deal is set between €400 and €550 billion in what UPS jumped by 1.83% to €9.52 per share at 0900 GMT on the Amsterdam Stock Exchange (AEX).
Headquartered in Atlanta, Georgia, UPS is the world's biggest package-shipping group with annual revenues last year of $53.1bn and 400,000 employees.
TNT Express operates in more than 200 countries. Based in Hoofddorp outside Amsterdam, TNT Express reported losses of 270 million euros last year.