UPS to acquire TNT Express for $6.77B

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United Parcel Service Inc. and TNT Express N.V. on Monday, March 19, jointly announced that they have reached agreement on a recommended all-cash public offer of EUR 9.50 per ordinary share by UPS for TNT Express. The offer values the issued and outstanding share capital of TNT Express at $6.77 billion.

The companies say the combination of UPS and TNT Express will create a global leader in the logistics industry, with annual revenues of more than $60 billion, and will deliver benefits for the shareowners, customers, employees and other stakeholders of both companies.

UPS says the proposed transaction will accelerate its growth strategy and increase its geographic diversity and ability to provide customers comprehensive solutions by strengthening its product capabilities through the addition of TNT Express’ leading Intra-Europe road freight network. UPS says the combination also enhances its existing position in fast-growing regions such as Asia-Pacific and Latin America.

“With this combination, both UPS and TNT Express will significantly enhance their ability to serve our combined customers’ complex global logistics needs,” said Scott Davis, UPS chairman and chief executive officer. “The additional capabilities and broadened global footprint will support the growth and globalization of our customers’ businesses. At the same time, this positions us for future growth, which will benefit our employees and shareowners.”