FedEx acquires TNT Express

The two most iconic and rival companies went through the M&A and were historic in the E-COMMERCE market.
FedEx acquired TNT express by creating a whole new picture of its company and putting itself into a very strong ground. The €4.4 billion 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 certainly proved to be a very strong acquisition in the market and FedEx itself has been reinventing itself since last 43 years and thereby it again did by completing this particular acquisition in the month of May2016.
This has been the start of a new era according to the FedEx chairperson by combing the two most strongest companies together.
About FedEx Corporation
FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $49 billion (not including TNT Express), the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its nearly 400,000 team members to remain “absolutely, positively” focused on safety, the highest ethical and professional standards and the needs of their customers and communities to connect people and possibilities around the world.
About TNT Express
TNT Express is one of the world’s largest express delivery companies. On a daily basis, TNT Express delivers close to one million consignments ranging from documents and parcels to palletised freight. The company offers road and air delivery services in Europe, the Middle East and Africa, Asia-Pacific and the Americas. TNT Express made €6.9 billion in revenue in 2015.
CONCLUSION
Yet with the FedEx acquisition of TNT Express, FedEx has effectively become one of Europe’s most important delivery companies overnight.
Executives at both companies had maintained the deal was substantially different from Atlanta-based UPS’s attempt because FedEx’s operations in Europe are much smaller than UPS’s were.UPS had revised its €5.2 billion ($5.63 billion) proposal, then valued at nearly $7 billion, three times and made plans to create a pan-European competitor in the overnight-parcel-delivery market, but it still failed to satisfy the EU’s concerns.
TNT’s expansive continental network includes over 700 flights and 55,000 trips by road each week. By leveraging that existing infrastructure, FedEx will now be in a position to provide better trans-Atlantic coverage that customers say will drastically improve their ability to conduct business on a global scale.
In the near term, customers can look forward to to interact with each company as they always have and receive the world-class service they have come to expect.
BY: DEVIKA SHARMA