Jake GodinInternational delivery giant FedEx just got a whole lot bigger.
On Tuesday, the delivery service announced it shelled out a whopping $4.8 billion in cash for Netherlands-based shipper TNT Express.
If the deal goes through — and TNT's board has already signed off — the deal will significantly increase FedEx's reach in Europe and make it the continent's third largest shipper. (Videos via FedEx & TNT Express)
In a joint statement, TNT Express explained how the move would be good for shareholders: FedEx would pay 8 euros per share or 33 percent more than the closing price before Easter and 42 percent more than the stock's average price over the past three months. (Video via TNT Express)
And yet, that's around 15 percent less than what UPS offered TNT before getting shot down by antitrust regulators back in 2013. When asked about those regulators in a press conference, FedEx's president in Europe, David Binks, said the company wasn't worried. (Video via UPS)
"We're very confident," Binks said. "Let me just say this. We know there are two strong players in the marketplace. Now there will be three."
The biggest advantage FedEx has going for it over UPS is that both FedEx and TNT, even combined, are still smaller than UPS and DHL in Europe, meaning regulators are not as likely to make a fuss over antitrust issues. (Video via FedEx)
Nonfinancial stipulations in the deal ensure employment terms within TNT will remain in place and the headquarters for the combined companies in Europe will be in Amsterdam. (Video via TNT Express)
Pending any regulatory hoops and hurdles, the companies expect the deal to finish in the first half of 2016. (Video via FedEx)
This video includes images from Getty Images and FedEx.
