UPS is boosted by tie-in with parcels rival

United Parcel Service is to pay $6.85bn (£4.32bn) for its Dutch peer TNT Express in a deal that will boost the position of the world's largest packages delivery company outside the United States.

UPS will become the market leader in Europe and also get access to TNT's stronger networks in the fast-growing Asian and Latin American markets, increasing the US company's global sales to more than $60bn and leaving it with 477,000 employees.

The deal will take UPS's revenue outside the US to 36 per cent of total projected annual revenue of $60bn, up from 26 per cent yesterday. In particular, it will increase UPS's presence in Brazil and Australia.