Takeover will create Euro giant
20 / 03 / 2012
UPS will buy the Dutch TNT Express for US$6.85 billion (€5.2 billion), strengthening its lead as the world’s largest integrator outside of the US.
As well as becoming the market leader in Europe, UPS will have access to TNT’s stronger networks to the emerging markets in Asia-Pacific, as well as Australia, and Latin America, in particular Brazil.
The purchase will boost UPS’ global sales to more than US$60 billion (€45 billion).
“TNT Express fits into UPS’ long-term network plan,” says UPS chief executive officer, Scott Davis. “This broadens UPS’ global footprint.”
Germany’s Deutsche Post DHL is already calling on the European Commission to examine the takeover for reason of anti-competition.
UPS says it is confident the European antitrust watchdog will approve the deal, although analysts predict it will have to sell some of its European assets to win final approval.
“We expect some divestments will be needed for the competition clearances,” DZ Bank analyst Robert Czerwensky says.