US-based FedEx Corp. completed its €4.4 billion ($4.9 billion) acquisition of Dutch TNT Express, , with integration of the companies to start immediately.
The companies say customers will interact with each company as they always have and once the integration is complete, FedEx says they will benefit from an expanded global offering.
FedEx chairman and CEO Frederick Smith said the deal combines the world’s largest air express network and an “unparalleled” European road network
“This acquisition is a significant accomplishment and marks the beginning of a new era, filled with promise for our people, customers and shareowners,” said Smith. “We are proud to celebrate the joining of two iconic companies and the approximately 400,000 team members who are committed to serving customers around the world.
“The timing of this historic event is important, particularly in the current market environment where global e-commerce
is growing at double-digit rates,” Smith added. “Adding TNT’s capabilities to our existing world-class suite of services, including GENCO and the recently relaunched FedEx CrossBorder, will further expand the ability of FedEx to support business connections around the world.
FedEx had to overcome a number of regulatory hurdles that slowed the takeover process. At the end of April, it received unconditional approval from the Chinese Ministry of Commerce (MOFCOM) for its takeover of TNT – the final major obstacle to the deal.
TNT has been preparing for the deal. Earlier this month it said it would sell its overnight distribution subsidiary TNT Innight to the private equity firm Special Situations Venture Partners III, as it wants to concentrate resources on strengthening its core express delivery activities.
has warned that the FedEx takeover of TNT Express could have an impact the market for large and heavy item deliveries, as TNT has made “ugly freight” one of its specialities.