Express Freight and Parcel Carrier Merger Agreed by Chinese Authorities

US – EUROPE – CHINA – The Ministry of Commerce in the People’s Republic of China (MOFCOM) has given its unconditional approval of the proposed €4.4 billion acquisition of the Dutch parcel carrier TNT Express by express freight group and US rival, FedEx Corporation. The two companies have now gained all the relevant competition approvals needed for the merger as FedEx and TNT wait to close the deal. David Bronczek, President and CEO, FedEx Express, commented:

“I want to thank the team members who collaborated with regulatory authorities around the world to help us reach this important acquisition milestone. As we work towards closing the acquisition, we look forward to welcoming TNT Express team members to the FedEx family of companies as we expand our portfolio of solutions and connect even more people and possibilities.”

The merger was first announced in April 2015 when FedEx offered TNT shareholders €8 per share, representing a premium of 33% over the closing price of 2 April 2015. There had been many concerns surrounding the offer with some competitors arguing that the deal would limit trade in certain routes. Additionally, a similar merger between UPS and TNT fell through in 2012. Tex Gunning, Chief Executive Officer, TNT Express, said:

“With this final regulatory approval, we are one step closer to making the vision of combining the complementary networks of FedEx and TNT Express a reality. This intended acquisition will bring value for our customers, shareholders and employees.”