The Georgia, US-based fulfilment company United Parcel Service (UPS) has agreed to pay €5.2 billion for its Dutch competitor TNT Express in a deal that consolidate the world’s largest package delivery company’s position in Europe.
By means of the deal, UPS will also gain access to TNT’s stronger networks in the fast-growing Asian and Latin American markets, increasing the U.S. company’s global sales to over €45 billion and increasing its staff to 477,000 employees.
The deal raises competition issues, according to Germany’s Deutsche Post DHL, which has pressed the European Commission to make a thorough examination of the proposed takeover. TNT announced that its executive and supervisory boards unanimously supported UPS’s offer of 9.50 euros per share up from an initial 9 euros per share offered last month.
PostNL, TNT’s biggest shareholder with a 29.8 percent stake, also said it backed the offer, which will be financed through a combination of $3 billion in cash reserved and new debt. UPS said it was confident the European antitrust watchdog would clear the offer.