FedEx, TNT See ‘Timely Progress’ on Merger Deal
FedEx and Netherlands-based TNT Express provided an update on their planned combination, noting “timely progress” on their $4.8 billion deal and saying it could take one year to obtain all regulatory approvals.
The statement said that competition-related clearances are required by the European Union, the United States, China and Brazil for FedEx’s 8 euros-per-share bid for TNT that was announced April 7. The combination that would boost FedEx’s package and freight presence in Europe and Asia would create a company with about $55 billion in annual revenue.
“FedEx and TNT Express confirm that the process to obtain the required regulatory merger control approvals for the offer is proceeding without delays,” the statement said. “FedEx and TNT Express remain confident that substantive antitrust concerns, if any, can be addressed adequately and in a timely fashion.”
The update was required under Dutch law, the companies' joint statement said, noting that the formal offer details will be filed with the Netherlands Authority for the Financial Markets, or AFM, by June 30.
The statement also said the clearance process could take as much as one year to complete. The April 7 announcement said the closing of the transaction would be in the first half of next year.
