FedEx is proposing a takeover of TNT Express, an international courier delivery service based in the Netherlands, in a deal worth $4.8 billion, the Wall Street Journal reports.
The takeover would boost FedEx's international presence, as industry rival United Parcel Service (UPS) has a 35 percent share in express deliveries in Europe. Currently, FedEx only has 10 percent of share in express deliveries in Europe, the newspaper also reports.
UPS was slated to purchase TNT Express in January 2013, but was unable to do so given complications involving anti-trust laws. Despite this, FedEx and TNT Express remain "confident that antitrust concerns, if any, can be addressed adequately in a timely fashion," Yahoo! Finance reports.
"We have long identified Europe as an area where we were focused on for growth because of our relatively small market share when compared to other parts of the world," FedEx senior vice president for marketing Patrick Fitzgerald said, according to the site.
"It will drastically lower our costs to serve European markets by increasing density in our pickup and delivery operation."
TNT Express investors are scheduled to receive 8 euros per share in cash in their takeover from FedEx; the Dutch company's previous talks with UPS offered 9.5 euros. This price difference, however, is said to be a reflection of fewer synergies for FedEx.
In recent years, TNT Express has devoted more attention to its European courier delivery service and has slashed certain initiatives and venture programs from its sights.
FedEx is moving forward with plans to expand into new regions of the world.
