American parcel delivery service will takeover Dutch logistics firm two years after its failed tie-up with UPS. FedEx, the American parcel delivery company, has agreed a deal to buy its European rival TNT Express for ‘ 4.4bn ( 3.2bn) in move to boost its services on the continent. FedEx is offering TNT shareholders ‘ 8 per share in cash, a third higher than the Dutch firm’s closing price last week.
TNT shares have leapt by 30pc on the back of the new deal, which already has support from the company’s board and its major shareholder, PostNL, which owns a 14.7pc stake. The takeover comes two years after FedEx’s US rival UPS had a ‘ 5.2bn move to buy TNT blocked by European competition regulators. However, FedEx emphasised that there is a “high level of deal certainty” in its takeover and it anticipates “no major anti-trust issues”.
The European Commission had called a halt to TNT’s tie-up with UPS in 2013 on the grounds that the deal would limit customer choice and reduce the number of companies who could deliver small-packages across the continent. UPS is still engaged in a legal battle with the Brussels-based regulator over its decision. Analysts said that they expected FedEx and TNT to encounter little antitrust difficulties because the American company had a minimal presence in Europe.
FedEx, which is the world’s largest cargo airline operator, has just 2pc of the European market while TNT has a market share of around 15pc, according to Kepler Cheuvreux analyst Andre Mulder. By comparison, UPS had just below 10pc. “There is no regulatory risk as a combined TNT and FedEX has below a critical level of 25pc market share when remedies are deemed necessary”, Mr Mulder said. FedEx’s has made its approach at a time when M&A bankers have predicted that more American companies will take advantage of a strong dollar to pick up their European rivals on the cheap.
Analysts said that due to currency effects FedEx ‘ 8 a share offer is worth $8.75 compared to when UPS’ ‘ 9.50 per share offer was worth ‘ 12.50 in dollar terms in 2012. TNT has also been vulnerable to another takeover approach after its shares have dropped by 17pc over the past year, underperforming the wider Amsterdam market. David Binks, FedEx’s Euroean president, said that the US company had approach TNT a couple of weeks ago with the deal and both sides had worked over Easter to negotiate terms that were acceptable to all stakeholders. “The market conditions provided the right time for us to approach and give an opportunity for FedEx to signifcanlty build its European ground delivery network”, Mr Binks said.
TNT has been shedding assets and jobs to bolster its finances and warned that its main market would continue to be tough this year, after struggling with four straight annual losses. Howvever, Mr Binks said it was too early too comment on further job losses but redundancies would be minimal as the deal was “complementary rather than a combination of overlapping businesses”. TNT will significantly bolster FedEx’s European air and ground network.FedEx’sef executive Fred Smith set out a plan two years ago to boost its European profits by $1.7bn.
Mr Smith said: “This transaction allows us to quickly broaden our portfolio of international transportation solutions to take advantage of market trend.” TNT said the buyout was “good news for all stakeholders”. “Our people and customers can profit from the true global reach and expanded propositions, while with this offer our shareholders can already reap benefits today that otherwise would only have been available in the longer run,” said Tex Gunning, who took over as chief executive of the Dutch company after the failed UPS deal.
Source: The Telegraph 1 References ^ The Telegraph (www.telegraph.co.uk)
US Delivery Company FedEx Buys TNT Express for 4.4bn
European logistics leader Norbert Dentressangle joins the 2015 3PL Summit and the North American market place. In this year s 3PL Contracting report 1 , logistics executives identified North America as one of the top 4 regions that offer the best opportunities for 3PLs. With Norbert Dentressangle s recent purchase of Jacobson, the leading European logistics company kick-started its foray into the North American market-place.
Herv Montjotin, CEO and Scott Temple, Managing Director, Contract Logistics and Shared Services will be representing Norbert Dentressangle at this year s 3PL Summit and Chief Supply Chain Officer Forum , eft s C-level gathering of logistics executives and their head of supply chain counterparts, June 16-18, Chicago.
2 With 42, 000 employees, Norbert Dentressangle had turnover of ‘ 4.
67bn in 2014. It boasts one of Europe s biggest fleets with over 7, 800 vehicles and 11, 500 trailers with warehouse capacity north of 83 million square feet and 41 million square feet in frozen storage. In essence, it s truly a major player in the business of logistics.
At the 3PL Summit, Mr. Montjotin and Mr. Temple will be outlining ND s aims at becoming a leading global logistics provider, what Jacobson means for this and ND s foray into North American Logistics.
From our vantage-point in the UK, we ve been very familiar with Norbert Dentressangle s leadership in the logistics space for years said Chris Saynor, CEO, eft. With their recent purchase of Jacobson, I m interested to learn more about their move into North America, and excited to see how this development transforms logistics across Europe and North America. You can hear directly from Herv Montjotin, CEO and Scott Temple, Managing Director, Contract Logistics and Shared Services at this year s 3PL Summit.
They will be joined by the CEOs, CCOs, COOs and Presidents of most of North America s biggest logistics operators including CH Robinson, CEVA, ArcBest, XPO, Echo Global Logistics, YRCW, Panalpina, MIQ Logistics, UPS Ground Freight, and the top supply chain decision makers from the likes of Oracle, Verizon, Walgreens, Jabil, Office Depot, SanDisk, Raytheon, and many more.
Visit www.3PLSummit.com/register 3 to secure your pass.
References ^ 3PL Contracting report (www.eft.com) ^ 3PL Summit and Chief Supply Chain Officer Forum (www.3plsummit.com) ^ www.3PLSummit.com/register (www.3PLSummit.com)
6billion European Logistics Company Joins 3PL Summit
Only 23 more days of voting open to customers. So why should you vote? Hear from FM Logistic, one of last year s winners as they reflect on last year s win, with hopes to win again this year.
Eric Galinetti, Retail Key Account Director at FM Logistics reflects on what winning the award means to FM Logistic. Vote here for the best 3PLs 1 This award has recognised the ongoing work that FML has been putting in to keep customers satisfaction and growth during the last past years. The impact of this award has been evident in terms of recognition and positioning to be a referent and one of the leaders in the retail sector.
We look forward to continued growth in the logistics retail over the coming years too. In mid-2013 FM Logistic decided to extend its range of services provided to the retailers for Fresh activities in Russia in compliance with FM Logistic Group 10-years strategic vision. FM Logistic Russia is now the major player for the Retail but also in temperature controlled logistics Recent successes in Ukraine with Auchan, in Poland with Metro, in Russia with Atak, in France with Carrefour and in China with Carrefour and Auchan have contributed to the growth and expansion of the retail sector in FM Logistic which has continued to grow in 2014 representing a turnover of around ‘ 300 million, operating in more than 9 countries and geographic areas over 600 000 m2 and counting the biggest names the retail customers (Eric Galinetti, Retail Key Account Director, FM Logistic).
The shortlist has been compiled by a distinguished judging panel. These have nominated their leading 3PL service providers across 10 categories. The finalists selected for customer voting are here 2 .
This year the voting will close on November 14. Vote here for the best 3PLs 3 The winners will then be announced and celebrated at the annual European 3PL Summit & Chief Supply Chain Officer Forum the major industry meeting place for 3PLs and 3PL users. The Awards Reception will be held at the Park Plaza Hotel in Amsterdam on the 19th of November 4 during the lunch reception, and will be attended by 200 executives, including the CEOs of many top 3PLs, and VP & SVP supply chains from major customers.
If you would like to attend the awards or have any questions get in touch by contacting our Marketing Manager on the details below: Magali Mathieu Marketing Manager – eft [email protected] +44 207 422 4327 US toll free: 1 800 814 3459 ext.
4327 Canada toll free: 1 866 996 1235 ext.
4327 References ^ Vote here for the best 3PLs (events.eyefortransport.com) ^ voting are here (eft.com) ^ Vote here for the best 3PLs (events.eyefortransport.com) ^ The Awards Reception will be held at the Park Plaza Hotel in Amsterdam on the 19th of November (events.eft.com)
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