FedEx Corp. said today it has completed its US$4.8 billion acquisition of Dutch delivery firm TNT Express N.V., giving Memphis-based FedEx a major foothold in pan-European ground parcel transportation.
The integration process will begin immediately, the companies said in a statement. In the interim, customers will continue to work with each entity as they currently do, the companies said. FedEx was not available to comment on the length of the integration, but an industry source said the goal is to complete the process in four years.
"This acquisition is a significant accomplishment and marks the beginning of a new era, filled with promise for our people, customers, and shareowners," said Frederick W. Smith, FedEx's chairman, president and CEO, in the statement. The acquisition is the most expensive in FedEx's 43-year history.
The transaction was announced in April 2015 and was subsequently approved by regulators in the U.S., the European Union, China, and Brazil. The regulatory approvals cleared the way for the deal to be consummated.
The combined firm will have a 22- to 24-percent share of the European parcel market, compared to 41 percent for market leader DHL Express and 25 percent for UPS Inc., according to estimates from consultancy Shipware LLC. It will combine TNT Express' strong European road haulage network and FedEx's worldwide air infrastructure.
In January 2013, Atlanta-based UPS abandoned its US$6.8 billion proposal to acquire TNT Express after European antitrust authorities said they planned to reject the merger. EU regulators were concerned a UPS-TNT Express combination would aggregate too much market power in the hands of one company.