Large European Express Company now in American Hands
Two weeks ago the last hurdle for the take-over of TNT by FedEx was overcome. This means that one of the EU’s largest express companies will now be in American hands.
On April 29 the FedEx-TNT deal was approved by the Chinese government, which was the last major hurdle that had to be overcome in order to merge. The deal constitutes a 4.8 billion dollar acquisition of TNT Express by FedEx. After the unconditional approval of the European Commission, Brazil and the United States, this was the last approval which was needed for the merge.
Currently, TNT is worth 6.680 billion euros and has operations in more than 200 countries. In 2012 another American express service, UPS, had tried to take over TNT, but the European Commission prohibited the deal. It believed that the merge would threaten competition in the European market. FedEx, however, argued that the FedEx-TNT merge would enhance competition with regard to small package delivery services in and outside Europe. In contrast, it is believed by some that the merge would have negative consequences for shippers in the long term, because the market would lose a major player.
The first operational changes are expected to appear after this summer, when the regulatory process for the merge is finished.