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FedEx-TNT Merger Wins the European Shippers’ Support

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28 Jul 2015
By admin
FedEx to Acquire TNT

 

Finally, European shippers have shown their full support to the merger of world cargo giant FedEx with European parcel delivery queen TNT

 

If look back in 2013, when UPS decided to purchase the fellow express delivery firm TNT, the entire member base of European Shippers’ council was against the decision of purchase. It was a fear of lack of competition between intra-Europe express carriers that encourage the ESC to do so.   Resultantly, it gave a chance to another player to dominateintothe European markets after purchasing the TNT couriers and it was none other than FedEx, the giant of cargo and parcel delivery in the world.

The purchase was done by parts and the final part of the purchase was awaiting for the support of the European Shippers’ council. ESC member’s conference pronounced that 90 percent were in the favor of FedEx to purchase TNT.

According to members of ESC they did not want to see the competition of FedEx for express business inside Europe but it is an effective source of moving cargo from intra-Europe and from the United States.

UPS and DHL are the prevailing means of cargo in markets of Europe. The support of ESC is very important because without its support the economic supportive TNT would not make it much longer on its own. This competition will innate due to a powerful status of FedEx. FedEx is a better logistic group in Europe and across the world.

On other hand, in the final phase of this merger, FedEx submitted an appealing letter to the EU officials. In that letter, FedEx has requested the EU to give governing confirmation order for this historic purchase of $5 billion. FedEx says the plan of buying the TNT is a historic achievement for the company.

After this confirmation, the merger will be completed and TNT will become the part of FedEx forever, but it will not happen overnight. Report from the commission, the decision says that the EU committee could take at least twenty-five days to release a governing confirmation.

FedEx desired to complete this deal as early as 2016. There is a decrease of $2.64 has been seen in the share price of FedEx. TNT and FedEx merger is about to create another competition in the European cargo and freight markets. It will be the second largest setup after United Parcel Service (UPS).

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