Struggling Dutch logistics company TNT Express (AMS:TNTE) received a much needed boost this morning as FedEx Corporation (NYSE:FDX) has offered €8 per share (All in cash) for the company – this currently values the business at €4.4 billion. TNT Express, no stranger to corporate buy outs, after the failed deal in 2012 with United Parcel Service Inc (NYSE:UPS) was blocked by regulatory authorities needed as deal of this magnitude.
Competition from new start up delivery companies which rely heavily on automation & low staff costs means it was losing market share quarter on quarter – this coupled with difficult trading conditions linked to Europe’s tough economic situation made for an increasingly bleak outlook. Today’s news, as long as regulatory approval is given, could finally see some light at the end of the tunnel.
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