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FedEx-TNT Merger! Customers Are In Driving Seat Now

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18 May 2015
By admin

 

Cargo companies welcome FedEx-TNT merger because it will help to ease the cargo operations in UK and Europe

Cargo companies in UK and entire Europe welcome the proposed merger of TNT into the FedEx. It is a €4.4 billion deal that allow the FedEx to take over the TNT. The merger has been announced last week. The reaction in favour of the merger was very strong from the European cargo companies and it is expected that the European Union authorities will definitely approve the deal soon.

More than 90 percent of the cargo companies and shippers asked are in the favour of the deal, said Joost van Doesburg. He is the air freight policy advisor for the European Shippers Council.

A fairly extensive research was carried out under the supervision of the European Commission and the customers’ opinion was very vital part of the research. Previously when TNT announced its merger with the UPS, more than 95 percent cargo companies and shippers were against the deal and responded very negatively. Because the point of view of the shippers was that both UPS and TNT are already offering the same services in the Europe and this merger will never bring up any new opportunity.

FedEx always offers different kind of services that TNT, DHL Express or UPS cannot offer in the Europe and these companies cannot be the alternative of FedEx.

TNT is facing cash flow issues and to overcome these issues EU Commission will approve this merger soon. Said Joost. The management of both companies is agreed on the same point of interest that their customers will get benefits of this merger.

FedEx said that the merger will help boost its operations in the EU and it will definitely speed up the cargo delivery operations.

The most interesting thing is that in the next eight days, if any rival company offers a bid for TNT that exceeds the FedEx bid by eight percent then the deal between FedEx and TNT will be terminated. On other hand, FedEx said that they are not expecting any rival in near future.

Under the EU regulations FedEx will sell TNT Airways and Pan Air Lines anf FedEx is in connection with UPS and ASL Group to sell these airlines. After selling these airlines FedEx will host all the TNT operations from its operation hub in Europe.

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