United Parcel Service has reached a deal with TNT Express to buy its Dutch rival for €5.16 billion, creating a dominant package-shipping operation in Europe.
"The transaction will recreate a global leader in the logistics industry with more than €45 billion in annual revenues and an enhanced, integrated global network," the companies said in a statement.
The all-cash offer amounts to €9.50 per ordinary share, which represents a premium of 53.7% to the share price before the announcement of discussions between the two groups. TNT Express’s directors are backing the deal.
Last month TNT Express said it had rejected a €4.9 billion unsolicited offer by the US-based parcel and logistics giant, but remained in discussions.
Headquartered in Atlanta, Georgia, UPS is the world's largest package-shipping group with annual revenues last year of $53.1 billion and 400,000 employees. TNT Express operates in more than 200 countries and employs 83,000 people.
