United Parcel Service, the world’s largest package delivery company, has bought Dutch rivals TNT in a bid to dominate the market in Europe.
The deal is worth 5.2 billion euros and comes after UPS raised its initial offer. The Atlanta based company will pay 9.50 euros a share up from a bid last month of 9 euros.
“It’s a great day because the combination of the two companies, the complementary portfolio that we will be able to sell to our respective client base will be enhanced and will really deliver a global leader that will be unequalled,” explained Maria-Christine Lombard, TNT Express CEO
UPS has been trying to break into the European market which has been dominated by Germany’s DHL and TNT. The combined strength of the merger will now challenge DHL’s market share.
Analysts believe the benefits of the deal to UPS are not just limited to Europe. The move is likely to give it a much stronger hold in the fast-growing markets in Asia-Pacific, including China, where TNT has set up vast delivery network.