FedEx Corp. said Monday that it would formally launch its US$4.8 billion offer to purchase express carrier TNT. The Memphis Business Journal said last week that FedEx is confident the transaction will receive the necessary regulatory approval.
The acceptance period will run from Aug. 24 to Oct. 30, 2015, unless it is extended. The offer is subject to acceptance of 95 percent of TNT’s shareholders, which could drop to an 80 percent threshold if TNT’s shareholders approve the deal at a meeting Oct. 5.
Last month, the European Commission opened an in-depth investigation into the deal, similar to what occurred two years ago when UPS tried to purchase TNT. While the attempted UPS transaction was shut down by the commission over concerns about reduced competition due to the combined market share of the new entity, FedEx said the necessary approvals are on track to complete this deal in the first half of 2016. The offer must also receive approval from antitrust authorities in Brazil, China and the United States.
Once the transaction is closed, Tex Gunning said he will resign as CEO of TNT and as a member of the company’s executive board. Gunning will continue to serve the merged company for six months as a member of the integration committee. FedEx’s David Binks, meanwhile, will join the TNT executive board as CEO at that time. Maarten de Vries will remain in the TNT office as CFO for six months and also serve on the integration committee. Mark Allen, senior vice-president – legal, international, with FedEx Express will also join the executive board.