UPS reportedly inching closer to deal to buy Europe's TNT

on Thursday, March 8, 2012

UPS reportedly inching closer to deal to buy Europe's TNT Supply chain management heavyweight UPS is moving closer to acquiring Europe-based TNT Express, according to reports.

TNT is the continent's second largest express delivery service, and officials from the company have previously rejected UPS' takeover bids, Bloomberg reports. UPS recently attempted to purchase the company for roughly $6.5 billion, but executives from the two firms are reportedly moving closer to agreeing to a deal that would allow UPS to expand its presence in Europe.

UPS has been aggressively working to expand, particularly as it faces competition from other procurement agencies such as U.S.-based FedEx. Buying TNT would effectively give the company a leg-up in Europe. What's more, analysts said the deal is likely to gain regulatory approval because TNT is the smallest of the four biggest players in the worldwide delivery service sector.

Amsterdam-based TNT could still reject a bid from UPS, experts cautioned. Moreover, they said that UPS could also abandon the proposed purchase if the sale price rises precipitously, or if executives fear European regulators would withhold their approval from the acquisition. Still, if both sides reach an agreement, the deal would significantly boost UPS' presence in Europe, giving it access to TNT's expansive system of distribution and sorting facilities.

 

0 comments:

Post a Comment

Keep in Touch and Subscribe:

Keep up to date with your Procurement & Strategic Sourcing News.

Procurement News RSS Strategic SourcerorRSS Feed
Follow GetSavings on TwitterTwitter/GetSavings
Friend Source One on FacebookSource One on Facebook