US Approves FedEx-TNT Merger

[kscarbel2]

Transport Topics / November 30, 2015

FedEx Corp and Dutch counterpart TNT Express have won U.S. antitrust permission to merge, according to a listing of approved deals the Federal Trade Commission issued Nov. 24.

The European Union has yet to sign off on the proposed transaction, although the companies have said they received assurances that EU antitrust regulators would allow it to go forward.

In early November, the companies announced that the FedEx tender offer had been extended until Jan. 8 to allow more time for completion of regulatory reviews in countries such as China and Brazil.

The companies announced in April that FedEx would buy TNT for $4.9 billion in order to better compete in Europe.

The deal should catapult FedEx to second place in Europe behind Deutsche Post's DHL.

[kscarbel2]

FedEx Completes TNT Acquisition, Starts Asset Integration Immediately

Transport Topics  /  May 25, 2016

FedEx Corp. announced it would begin integration of TNT Express assets immediately after completing the $4.9 billion deal that is the buyer’s largest-ever acquisition.

“In the near term, customers can expect to interact with each company as they always have and receive the world-class service they have come to expect,” said the statement from the Memphis, Tennessee-based company. “Once the integration is complete, FedEx expects customers to enjoy an expanded global offering that draws upon the breadth of expertise from both companies.”

FedEx didn’t give any details about its financial expectations or specific steps that would follow the acquisition that was completed 14 months after its initial offer. The statement did say the move will add “significant value for FedEx shareowners, team members and customers.”

“This acquisition is a significant accomplishment and marks the beginning of a new era, filled with promise for our people, customers and shareowners,” said Frederick Smith, Chairman and CEO of FedEx. “We are proud to celebrate the joining of two iconic companies and the approximately 400,000 team members who are committed to serving customers around the world.

“The timing of this historic event is important, particularly in the current market environment where global e-commerce is growing at double-digit rates,” Smith added. “Adding TNT’s capabilities to our existing world-class suite of services, including GENCO and the recently relaunched FedEx CrossBorder, will further expand the ability of FedEx to support business connections around the world.”

FedEx’s announcement said the company plans to leverage technology, infrastructure, facilities and operational capabilities as a stronger package delivery company emerges in Europe, which is a $60 billion market with potential e-commerce growth at a 15% pace.

[kscarbel2]

FedEx finalizes $4.4 billion deal to acquire European carrier TNT Express

Commercial Carrier Journal (CCJ)  /  May 25, 2016

FedEx Corp. announced May 25 it has finalized its roughly $4.4 billion deal to acquire European carrier giant TNT Express. FedEx announced the acquisition last April, and the U.S. Federal Trade Commission stamped its approval on the deal in November.

The May 25 purchase settlement concludes FedEx’s acquisition of 88.4 percent of TNT’s shares, purchased at 8 Euros each, about $9 a share, for an aggregate value of 3.879 billion Euros, or about $4.4 billion.

Amsterdam/Hoofddorp will be the European regional headquarters of the combined companies. TNT Express’ hub in Liege, Belgium, will also remain a significant location for the group going forward.

“This acquisition is a significant accomplishment and marks the beginning of a new era, filled with promise for our people, customers and shareowners,” said Frederick W. Smith, Chairman and CEO of FedEx. “We are proud to celebrate the joining of two iconic companies and the approximately 400,000 team members who are committed to serving customers around the world.”

[Timmyb]

Thomas nationwide transport has come a long way. 

[mrsmackpaul]

I read the book on Ken Thomas only in the last month or so if you havent read it grab your self a copy zipped thru it in no time great read and the way the book ends very sad 

 

Paul

[Timmyb]

I've heard of the book but I'm yet to read it. By the sounds of things he revolutionised transport here in Aus. I'm gonna get that book I think...

[kscarbel2]

TNT Deal Raises FedEx Employment to Almost 400,000

Transport Topics  /  May 29, 2016

In one fell swoop, FedEx ballooned to nearly 400,000 employees worldwide and close to $58 billion in annual revenues.

The jewel of FedEx's acquisition of TNT Express last week is a European road network linking 40 countries, but the heart of FedEx remains in Memphis, Tennessee.

No immediate impact was foreseen on FedEx's Memphis area workforce of more than 30,000, but the company's continued growth as a force in world commerce would have a ripple effect. FedEx is the that area's largest private employer.

TNT and FedEx, the Nos. 3 and 4 players in the $60 billion European express delivery market, on May 25 consummated a $4.9 billion deal that had been brewing since early 2015.

The combination promises to make FedEx a bigger player in Europe by building on TNT's road network and improving international connections. FedEx ranks No. 2 on the Transport Topics list of the 50 largest global freight carriers; TNT had been No. 22. UPS is No. 1.

FedEx also moved into a virtual dead heat with chief U.S. rival UPS in total revenues, although it still trails the Atlanta-based company's workforce of 444,000. A decade ago, FedEx had two-thirds of UPS' annual revenues.

FedEx chief spokesman Patrick Fitzgerald discussed the integration, which is expected to take four years, and potential impact in Memphis. He acknowledged that in the short term, "I wouldn't have anything to point to tangibly that people would see." FedEx is moving European headquarters from Brussels, Belgium, into TNT's home base in Hoofddorp, The Netherlands.

FedEx Express is adding TNT's airfreight hub in Liege, Belgium, to principal European hubs Paris-Charles De Gaulle and Cologne, Germany.
FedEx's pattern in the past has been to leave newly acquired companies' headquarters where they are. FedEx Ground, which grew out of a 1998 purchase of Caliber System/Roadway Package Service, is based in Moon Township outside Pittsburgh. FedEx Office, rooted in the acquisition of Kinko's in 2004, moved into a new world headquarters in Plano, Texas, last year.

FedEx declined to break down employee numbers in the Memphis area, including the FedEx Express World Headquarters on Hacks Cross, the hub at Memphis International Airport and FedEx World Technology Center in Collierville.

Memphis airport officials have pegged hub employment at "more than 11,000," and a 2015 FedEx report to Collierville said the tech center employed 2,709. FedEx Ground and FedEx Freight have service centers and sorting facilities.

Fitzgerald is senior vice president of integrated marketing and communications. His responses have been edited for brevity.

Commercial Appeal: Will a growing market share in Europe and other countries served by TNT feed more volume into the hub?

Fitzgerald: There's significant potential for growth, which would affect all of our operations, and obviously the hub here in Memphis is at the heart of FedEx Express and FedEx Express operations. It should be very positive for all our employees.

CA: Will this acquisition have an impact on the big operations that are already here, the hub, world headquarters?

Fitzgerald: Our team members will certainly be aware of being on a larger team. We're moving to approximately 400,000 team members around the world. It's just the latest step in the evolution and growth of FedEx. We're a growing, successful organization that continues to be very proud to be headquartered here in Memphis. Just in terms of our success as a company and a growth engine or driving engine is the growth of e-commerce, which I think everybody feels in just day-to-day retail and business patterns. We play a key role in that, and the acquisition of TNT will help us continue to grow that. You may notice some things that way.
CA: How quickly will FedEx move to rebrand the combined operation?

Fitzgerald: The TNT brand is very strong, so it's really something that we want to make sure we pursue in the most effective course for the brand and not lose any of the strength of either brand. The combined brand together will be stronger, but specific considerations, the vehicles and aircraft, country by country, that's all going to be part of the integration process. It's not to say we in any way want to diminish the strength of the TNT brand. We've done some significant acquisitions in the past and that includes Flying Tigers and RPS, FedEx Ground, Kinko's and FedEx Office. We do have some experience in this and each one's a bit different. In this case, because this is such a large international integration, we do have to consider country by country, so it may vary by territory in terms of brand transitions.