With U.S. integrator FedEx taking over Dutch company TNT Express, today (25 May), a new logistics giant has been born, becoming a powerful global competitor to DHL Express and UPS. The integration process shall start immediately, announces FedEx.
In the release, FedEx stresses that the €4.4 billion acquisition combines the strengths of both companies, creating the world’s largest air express network and a tightly-knit European road
“This acquisition is a significant accomplishment and marks the beginning of a new era, filled with promise for our people, customers and shareowners,” commented Frederick W. Smith, Chairman and CEO of FedEx. “We are proud to celebrate the joining of two iconic companies and the approximately 400,000 team members who are committed to serving customers around the world.”
At a press conference David Bronczek, FedEx Express President and CEO delivered an optimistic outlook: "The combined two companies will transform the worldwide express playing field. Together we have a complete portfolio of solutions combining the largest express international global business of FedEx with the unparalleled European road feeder network of TNT."
He announced that Hoofddorp in the Netherlands has been selected as future headquarters of the combined entity.
“The timing of this historic event is important, particularly in the current market environment where global e-commerce is growing at double-digit rates,” Smith stated. “Adding TNT’s capabilities to our existing services, including GENCO and the recently relaunched FedEx CrossBorder, will further expand the ability of FedEx to support business connections around the world.”
“Over our 43 year history, FedEx has repeatedly reinvented and revolutionized the industry, from the first overnight express service backed by a money-back guarantee to the invention of internet shipping. And just as we revolutionized the U.S. domestic parcel business through the acquisition and development of what is now FedEx Ground, the acquisition of TNT will change the way customers view FedEx around the world,” Smith continued.
Three European hubs
David Binks, FedEx Express European Chief confirmed during the press conference that FedEx/TNT intends continuing utilizing Paris CDG, Cologne and TNT's major gateway Liege as primary European hubs. Further airports like Copenhagen, Stansted and Milan complement the operation with possible more to come in view of a growing market place.
Binks also assured that the TNT brand will be kept for the time being, thus denying earlier speculations it might by abolished once the acqusition is completed.
As to the costs of the integration and possible job losses the manager remained vague. "It's way too early to present details," he stated.
Fast integration targeted
Alan B. Graf, Jr., FedEx Executive Vice President and Chief Financial Officer added to this that the acquisition will add significant value for FedEx shareowners, team members and customers around the globe, particularly in Europe. Graf went on to say: “The TNT team members bring 70 years of diverse experience, which combined with that of FedEx team members, will make this integration a success.”
In today’s acquisition announcement, FedEx points out that the integration process will begin immediately. The FedEx track record of successful acquisition integrations in the U.S. and globally will serve the combined companies well to leverage investments in technology, infrastructure, facilities and operational capabilities to position the combined companies for long-term growth and success.
Once the amalgamation is complete, FedEx expects customers to enjoy an expanded global offering due to TNT’s integration into the business of the Memphis, Tennessee-based package delivery giant.