The consolidation of the parcel distribution industry in Australia continues and sees another major takeover swallow up one of the country’s big players. Fedex have made an offer to take over the TNT Express operation, globally.
The deal is said to be worth $6.25 billion and is being supported by both Fedex and TNT Express. The offer of $14 per TNT Express share is 42 per cent above their average value in the past few months. A statement from TNT Express headquarters in Amsterdam talks about a, ‘high level of deal certainty’.
The deal will make Fedex an even stronger player in the global parcel market than it already is. The takeover will make for a considerable increase in Fedex’s profile in the massive European market, where TNT Express has always been strong.
FedEx and TNT Express have said they are confident the deal should not face any regulatory concerns in the various markets where the companies operate. The whole takeover is expected to be completed by the early months of next year.
This deal follows the recent takeover of Toll by Japan Post and sees the major parcel distribution players manoeuvring and acquiring operations to be able to operate as a single entity on a global scale. Clearly, size matters in the parcel game and the big boys are getting bigger.