Back to the Drawing Board for Disappointed TNT Express and UPS

  Google+  Twitter | + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

While in the middle of January it had seemed clear that the European Commission was going to block the acquisition of TNT Express by United Parcel Service (NYSE:UPS), the EC didn’t release an official decision until Wednesday, when it met the expectations it had set.

The acquisition would have meant big things for both UPS and TNT.

For UPS, acquiring TNT Express would have boosted its operations within Europe, Asia, and Latin America. Adding TNT Express’s network would have been a step forward in global logistics for UPS, and could have increased UPS’s 10 percent European market share to a 28 percent share and shifted the company’s European revenues from 26 percent to 36 percent of total sales.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

For TNT, the acquisition seemed almost like an expected next-step for the company. After UPS made the offer to acquire TNT, the latter’s chief executive left the company. TNT’s own market share is also believed to have eroded during acquisition talks with UPS, leaving the company in a worse state than when negotiations began…

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business