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FedEx launches TNT takeover bid, confident regulatory approval from EU
MEMPHIS based FedEx Corp said it will formally launch its US$4.8 billion offer to purchase Dutch express carrier TNT, reports the Memphis Business Journal.
The acceptance period will run from August 24 to October 30 unless it is extended and the offer is subject to acceptance of 95 per cent of TNT's shareholders, which could drop to an 80 per cent threshold if TNT shareholders approve the deal at a meeting October 5.
Last month, the European Commission opened an in-depth investigation into the deal, similar to what occurred two years ago when UPS tried to purchase TNT, said the Memphis journal.
While the attempted UPS transaction was shut down by the commission over concerns about reduced competition due to the combined market share of the new entity, FedEx said the necessary approvals are on track to complete this deal in the first half of 2016.
The offer must also receive approval from antitrust authorities in Brazil, China and the United States.
If a deal is done TNT chief executive Tex Gunning said he will resign as CEO of TNT and as a member of the company's executive board. Mr Gunning will continue for six months as a member of the integration committee.
FedEx's David Binks will join the TNT executive board as CEO. Maarten de Vries will remain in the TNT office as CFO for six months and also serve on the integration committee. Mark Allen, senior vice-president legal, international, with FedEx Express will also join the executive board.
The acceptance period will run from August 24 to October 30 unless it is extended and the offer is subject to acceptance of 95 per cent of TNT's shareholders, which could drop to an 80 per cent threshold if TNT shareholders approve the deal at a meeting October 5.
Last month, the European Commission opened an in-depth investigation into the deal, similar to what occurred two years ago when UPS tried to purchase TNT, said the Memphis journal.
While the attempted UPS transaction was shut down by the commission over concerns about reduced competition due to the combined market share of the new entity, FedEx said the necessary approvals are on track to complete this deal in the first half of 2016.
The offer must also receive approval from antitrust authorities in Brazil, China and the United States.
If a deal is done TNT chief executive Tex Gunning said he will resign as CEO of TNT and as a member of the company's executive board. Mr Gunning will continue for six months as a member of the integration committee.
FedEx's David Binks will join the TNT executive board as CEO. Maarten de Vries will remain in the TNT office as CFO for six months and also serve on the integration committee. Mark Allen, senior vice-president legal, international, with FedEx Express will also join the executive board.
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