FedEx to buy TNT Express

US-based FedEx and Netherlands-based TNT Express have agreed to an all-cash public offer for the latter's shares, in what is the second six-billion-dollar deal to rock the global freight and logistics industry in six weeks.

The purchase comes after Japan Post announced its intention to buy Toll Group on February 18 – a $A6.5 billion acquisition that will be voted on by Toll shareholders on May 13.

FedEx and TNT Express reached a conditional agreement on April 7 of Euro 8.00 per ordinary TNT Express share, the figure representing a 33 per cent premium over the firm's closing price on April 2 and an implied equity value of $A6.24 billion.

The bid has received the support of the TNT Express Executive Board and Supervisory Board, while the firm's largest shareholder, PostNL, has agreed to tender its 14.7 per cent stake.

The deal will further FedEx's European footprint considerably, with market analysts predicting it will see the Memphis, Tennessee-based firm leapfrog from fourth to second place in terms of European market share, placing it second only to Deutsche Post's DHL. The extensive road fleet owned by TNT Express in Europe is also a natural fit for FedEx's large air-freight arm, states a FedEx media release.

The Chairman and CEO of FedEx, Fred W. Smith, said the purchase will add greatly to the company's capabilities while promoting substantial growth.

"We believe that this strategic acquisition will add significant value for FedEx shareowners, team members and customers around the globe," he said, in a media statement.

"This transaction allows us to quickly broaden our portfolio of international transportation solutions to take advantage of market trends – especially the continuing growth of global e-commerce – and positions FedEx for greater long-term profitable growth."

The CEO of TNT Express, Tex Gunning, said the offer has accelerated returns for TNT Express shareholders.

"This offer comes at a time of important transformations within TNT Express and we were fully geared to executing our stand-alone strategy," he said.

"But while we did not solicit an acquisition, we truly believe that FedEx's proposal, both from a financial and a non-financial view, is good news for all stakeholders. Our people and customers can profit from the true global reach and expanded propositions, while with this offer our shareholders can already reap benefits today that otherwise would only have been available in the longer run."

The two companies anticipate that the offer will close in the first half of 2016, while both parties have agreed that the existing employment terms of TNT Express will be respected.