Dutch logistics giant TNT Express is to be acquired by its US-based rival UPS for €5.16 billion, it has been announced.
The two companies said the combined entity will create a global leader in the logistics industry with annual revenues of more than €45 billion.
TNT Express delivers close to one million consignments, from documents and parcels to palletized freight, each day. The company operates road and air transport networks in Europe, the Middle East and Africa, Asia-Pacific and the Americas. In 2011, the company had revenues of €7.25 billion.
The companies said the combination will enhance UPS’s position in Europe by strengthening its product capabilities through the addition of TNT Express’ Intra-Europe road freight network. The combination will also enhance UPS’s existing position in fast-growing regions such as Asia-Pacific and Latin America.
Following the transaction, around 36 per cent of the combined group’s revenues will be generated outside the US—up from 26 per cent currently at UPS.
Commenting, Scott Davis, UPS’s chairman and CEO, said: “With this combination, both UPS and TNT Express will significantly enhance their ability to serve our combined customers’ complex global logistics needs. 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.”
Marie-Christine Lombard, CEO of TNT Express, added: “This combination will significantly enhance the capabilities of two strong companies. I am convinced that together we will be the supplier and employer of choice in the express delivery industry. Our customers will greatly benefit from our enhanced combined service offerings. To my 77,000 colleagues I say that the combination will create unique opportunities for development and growth in which we can participate.”
Headquartered in Atlanta, UPS serves more than 220 countries and territories worldwide. TNT Express is headquartered in Amsterdam and runs a fleet of 30,000 road vehicles and 46 aircraft.
