The acceptance period for FedEx Corp.’s recommended public purchase offer for TNT Express until Jan. 8, 2016 was extended because the deal has not yet been approved by the relevant antitrust authorities, according to a joint statement from the companies.
FedEx Corp. and TNT Express N.V. have extended the acceptance period for FedEx’s recommended public purchase offer all issued and outstanding ordinary shares in the capital of TNT Express until Jan. 8, 2016, according to a joint statement from the companies.
FedEx and TNT said the extension was necessitated by the fact that the deal has not yet been approved by the relevant antitrust authorities in the European Union, Brazil, China and the United States.
The companies, however, are still on track to obtain all necessary approvals and competition clearances, and expect to officially complete the transaction in the first half of calendar year 2016.
FedEx made its initial $4.8 billion all-cash offer for the Netherlands-based global express carrier back in August, two years after European Union competition authorities nixed an attempted merger between TNT and FedEx arch-rival UPS.
According to industry analysts, FedEx has a much smaller market share in Europe than UPS, which increases the chances of its tie-up with TNT being approved. In fact, The European Commission said in its decision against UPS that FedEx did not represent a significant European competitor that could counteract a UPS-TNT merger.
The European Commission has since initiated a Phase II review of the FedEx-TNT deal on Aug. 13 announced it had extended its deadline for the completion that review to Jan. 13, 2016. Despite reports to the contrary, FedEx and TNT reiterated the companies have not received a “Statement of Objections” from the EC, and have been told one will not be issued.
The transaction is also being reviewed by other antitrust agencies, including the Ministry of Commerce (MOFCOM) in China and the Conselho Administrativo de Defesa Econômica (CADE) in Brazil.
The merger “presents a highly pro-competitive proposition for the provision of small package delivery services within and outside Europe,” the companies said. “The networks of TNT Express and FedEx are largely complementary, given that FedEx’s strength is providing US domestic and extra-EEA international services, while TNT Express’ focus is on providing intra-European services. The Combination would allow the parties to sell a more competitive e-commerce offering in the market, which should benefit consumers and SMEs in Europe and beyond.”
FedEx is on an expansion spree aimed at putting it on par with UPS in offering customers complete supply chain services in all geographic regions. The company acquired GENCO, a large U.S. third-party logistics provider that specializes in warehousing, packaging, e-commerce fulfillment and reverse logistics in January for $1.4 billion and in December 2014, FedEx bought Bongo International, a small company that helps retailers with technology to enable online international sales and manage cross-border shipments. It is also investing in several large distribution centers in North America.
FedEx, TNT extend public offer period
