FedEx acquisition of TNT Express for €4.4 billion
this week combines the 43-year-old, Memphis-based powerhouse
with the iconic 70-year-old Hoofddorp, Netherlands,
Apparently UPS, a TNT
suitor, vigorously opposed the takeover.
The deal (in Europe,
at least) strengthens FedEx’s hand as it attempts
to take on Deutsche Post AG’s DHL and, of course,
FedEx emerges as a company
with 400,000 employees, but the TNT Express brand will
soon disappear from view forever as another storied
transportation brand bites the dust.
outside the window, the most noticeable change will
be the absence of TNT-branded aircraft, as the fleet
of 35 freighters (along with 580 employees) move to
ASL as part of an EU-mandated provision of the merger.
ASL is a Dublin, Ireland,
based company whose airlines operate a variety of scheduled,
ACMI, and charter passenger and cargo flights.
ASL has a deal to continue
operating flights for FedEx and said it would honor
the terms of employee contracts.
TNT’s days as a
stand-alone company have been numbered for some time
now as the company has been in play since March 19,
2012, when UPS said it would acquire TNT Express for
That deal fell through
in January 2013 after it was announced that UPS failed
to obtain permission from the European Commission and
as such had been blocked on competition grounds.
On another front, there
were some interesting observations by UK-based delivery
company parcelhero’s Head of Consumer Research,
David Jinks, who told the online publication Post &
Parcel that the FedEx takeover of TNT Express could
impact the market for “ugly freight,” a
TNT Express special market focus.
“TNT is very popular
with users shipping large and heavy deliveries,”
have restrictive parcel size and weight restrictions,
but TNT has significantly greater flexibility on the
size of packages it accepts, operating bigger vehicles
than other carriers, generally with tail lifts capable
of loading pallets and heavy parcels.
“FedEx, TNT Express’
new owners, are specialists in international delivery
services but have no culture of supporting ugly freight
to any extent.
“If TNT Express
is steered away from such items as part of FedEx—and
it’s undeniable that they do require more investment
and expertise—the loss of these services would
be keenly felt.”
TNT began in Australia
after World War II, when Australian Ken Thomas set up
Thomas Nationwide Transport (TNT) with a single truck.
Today TNT Express is
one of the world’s largest express delivery companies.
On a daily basis, TNT
Express delivers close to one million consignments ranging
from documents and parcels to palletized freight. The
company offers road and air delivery services in Europe,
the Middle East, Africa, Asia-Pacific, and the Americas.
TNT Express delivered
€6.9 billion in revenue in 2015.