The Chinese Ministry of Commerce on Friday unconditionally approved FedEx’s $4.8 billion acquisition play for Netherlands-based global package delivery firm TNT Express.
China’s Ministry of Commerce on Friday unconditionally approved FedEx’s acquisition play for Netherlands-based global package delivery firm TNT Express.
“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,” said Tex Gunning, chief executive officer of TNT Express, in a statement.
The announcement follows Brazil’s Conselho Administrativo de Defesa Econômica’s unconditional approval of the acquisition in late March, and the European Union’s approval of the $4.8 billion deal in January. U.S. regulators approved the FedEx-TNT Express tie-up in late November 2015.
The European Union nixed a similar deal between UPS and TNT two years ago when it sought divestitures that UPS was unwilling to make. Memphis-based FedEx made its initial offer to buy TNT in April 2015.
FedEx is a smaller player in Europe than UPS, and many analysts believe the union with TNT is positive for consumers because it allows for three major competitors, as well as smaller regional couriers, and provides TNT with long-term stability at a time when it has been shrinking to remain profitable.
China approves FedEx acquisition of TNT
