MEMPHIS/HOOFDDORP: April 29, 2016. FedEx has obtained unconditional approval from China’s Ministry of Commerce for its proposed US$4.8 billion cash offer for TNT Express. With this last regulator confirmation, shareholders have until May 13 to accept the proposal.
“I want to thank the team members who collaborated with regulatory authorities around the world to help us reach this important acquisition milestone,” said David Bronczek, president and CEO, FedEx Express. “As we work towards closing the acquisition, we look forward to welcoming TNT Express team members to the FedEx family of companies as we expand our portfolio of solutions and connect even more people and possibilities.”
TNT Express reported a first quarter (Q1) 2016 operating loss of €1 million on revenue of €1.58 billion – a 91 percent improvement on the same period last year. The net loss also improved 26.3 percent to €14 million year-on-year. The company said it expects continued economic volatility in some markets outside Europe, especially in Brazil and restructuring charges of about €30 million in the second quarter, when it expects to complete the FedEx acquisition.
“With this final regulatory approval, we are one step closer to making the vision of combining the complementary networks of FedEx and TNT Express a reality,” said TNT Express CEO Tex Gunning. “This intended acquisition will bring value for our customers, shareholders and employees,” he added.
Commenting on the Q1 results, Gunning said adjusted operating income improved despite fewer working days and continued investments in the company’s ‘Outlook’ strategy. “Our customer satisfaction scores hit new records in Q1. Investments in operational excellence have started to pay off and were €51 million during the quarter,” he noted.