FedEx Corporation, an American global courier delivery services company is to buy Dutch package delivery firm TNT Express for 4.4 billion euros ($4.8 billion), planning to tackle greater opponents such as United Parcel Service and Deutsche Post in Europe.
According to the statement of Communications Vice President at FedEx, the acquisition will significantly bring down the company costs to serve European markets.
As understood the market share of the industry, Deutsche Post’s DHL as of now has a 19 percent share of the overall industry in Europe, took after by UPS with 16 percent, TNT with 12 percent and FedEx at 5 percent.
The new deal between FedEx and TNT would sling FedEx to second place.
FedEx, incorporated on October 2, 1997, provides a portfolio of services in areas such as transportation, e-commerce and business services under the FedEx brand.
The company has restructured for the 21st century and is currently offers its services through five major operating companies: FedEx Express, FedEx Ground, FedEx Freight, FedEx Custom Critical, and FedEx Trade Networks.
Operating in about 220 countries, FedEx Express unit is the world’s largest express shipping company.
