The world's biggest package-shipping group, United Parcel Service (UPS), is one decisive step closer to buying TNT Express from the Netherlands. Both sides reached a transaction deal on Monday.
US-based United Parcel Service (UPS) reached a deal with TNT Express to buy its Dutch rival for 5.6 billion euros ($6.77 billion), the companies announced in a joint statement on Monday.
The takeover will result in a dominant package-shipping operation in Europe with a potential to threaten the supremacy of the current leader in the sector, DHL Express of Germany.
"The transaction will recreate a global leader in the logistics industry with more than 45 billion euros in annual revenues and an enhanced, integrated global network," UPS and TNT Express said in a statement.
The UPS cash offer amounts to 9.5 euros per ordinary share. This is a premium of 53.7 percent over the share price before the announcement of takeover discussions.
Shareholders asked to agree
"The Executive and Supervisory Boards of TNT Express unanimously intend to support and recommend the offer," the Dutch company stated. But shareholders will still have to approve the deal.
In February, TNT Express was still reluctant to merge with UPS, rejecting an initial 4.9-billion-euro offer by the world's largest parcel and logistics company, headquartered in Atlanta, Georgia.
UPS currently has annual revenues of $53.1 billion and a global workforce of 400,000. TNT Express employs 83,000 people and is active in 200 countries.
TNT Express only emerged on the market in 2011, after TNT was split up into a letter service and a package-shipping operation.
hg / mll (AFP, dapd, dpa)