US parcel delivery company UPS to take over Dutch rival TNT Express
March 19, 2012 00:00 By
Brussels - UPS, the US parcel delivery company, is to take over its Dutch rival TNT Express for 5.16 billion euros (6.77 billion dollars), the two firms announced on Monday.
"The transaction will create a global leader in the logistic industry with more than 45 billion euros ... in annual revenues and an enhanced, integrated global network," the joint UPS-TNT Express statement said.
UPS agreed to pay 9.50 euros for each of its rival's ordinary shares- a markup of 53.7 per cent on its stock exchange value from February 16, the day before the two companies started takeover talks.
In February, the US firm proposed 9 euros per share, an offer that was rejected as too low by TNT Express. The new, revised bid was backed by the management and supervisory boards of both companies.
PostNL, the Dutch post company from which TNT Express was spun off in 2011, has agreed to sell its remaining 29.8-per-cent share of the company at the terms offered by UPS.
Under the deal, the rights of TNT Express' 77,478 worldwide employees "will be respected" and staff in the new merged company "will have broader career opportunities," the statement said.
However, Dutch unions have called for an urgent meeting with the management, seeking reassurances against any possible redundancies, Dutch news agency ANP reported.
TNT Express posted a net loss of 173 million euros in the fourth quarter of 2011.//DPA