UPS Remains In
Discussions With TNT Express To Purchase Company
By Mike Mitchell
March 18, 2012 - UPS remains in constructive discussions
with TNT Express N.V. regarding a potential transaction
to acquire the entire issued share capital of TNT
Express. Back on February 11, UPS made an unsuccessful
bid of $6.4 billions of TNT Express.
line with regulatory requirements, UPS expresses it
still has the intention to submit a request for approval
of its offer document to the Netherlands Authority for
the Financial Markets (AFM) within 12 weeks (by May 11
at the latest) from its initial announcement of Feb. 17,
2012. UPS and TNT Express have ruled out a potential
counter bid from FedEx Corp.
In response to the announcement from TNT Express NV, UPS confirms that, on February 11, 2012, following discussions with TNT, it made a revised, increased and comprehensive proposal to acquire the entire issued share capital of TNT for EUR9 per share in cash.
Discussions between the parties concerning this proposal are
ongoing, although there is currently no certainty that any
agreement will be reached. TNT Express N.V. is an international
express and cargo delivery services company with headquarters in
Hoofddorp, Netherlands. The firm has fully owned operations in
65 countries and delivers documents, parcels and pieces of
freight to over 200 countries. The company recorded sales of
over ?7.2 billion in 2011.
an operating division of TNT N.V., TNT Express was demerged from
its parent company on 26 May 2011, taking a listing on the
Euronext Amsterdam Stock Exchange. TNT N.V. subsequently renamed
competitors include FedEx, United Parcel Service (UPS) and DHL.
TNT Express aircraft operate under the IATA code of TAY (TNT
Airways). The company operates road and air transportation
networks in Europe, the Middle East and Africa, Asia-Pacific and
the Americas. It employs 77,000 people and runs a fleet of
30,000 road vehicles and 46 aircraft.
Parcel Service, Inc., typically referred to by the acronym UPS,
is a package delivery company. Headquartered in Sandy Springs,
Georgia, United States, UPS delivers more than 15 million
packages a day to 6.1 million customers in more than 220
countries and territories around the world. UPS is well known
for its brown trucks, internally known as package cars (hence
the company nickname "The Big Brown Machine"). UPS also operates
its own airline based in Louisville, Kentucky.
bulk of UPS's competition came from inexpensive ground-based delivery
services, such as Parcel Post (USPS) or Choice Logistics. But in 1998
FedEx expanded into the ground parcel delivery market by acquiring RPS
(originally Roadway Package System) and rebranding it as FedEx Ground in
In 2003 DHL
expanded its US operations by acquiring Airborne Express, significantly
increasing its presence in the United States, and adding more
competition in the ground delivery market. In response to this, UPS
partnered with the US Postal Service to offer UPS Mail Innovations, a
program that allows UPS to pick up mail and transfer it to a USPS
center, or destination delivery unit (DDU), for final distribution. This
process is also known as zone skipping, long used by Parcel
More recently, the
continued growth of online shopping, combined with increasing awareness
of the role transportation (including package delivery) has on the
environment, has contributed to the rise of emerging competition from
niche carriers or rebranded incumbents. For instance, the US Postal
Service claims "greener delivery" of parcels on the assumption that USPS
letter carriers deliver to each US address, six days a week anyway, and
therefore offer the industry's lowest fuel consumption per delivery.
|blog comments powered by Disqus|
|?AvStop Online Magazine Contact Us Return To News|