UPS to buy TNT Express

 

The world's largest delivery company, United Parcel Service,
boosted its presence in the UK today with a deal to buy European rival TNT Express.

 Holland-based TNT Express employs some 10,000 staff in the UK and Ireland with 50 delivery depots and large sites at Atherstone, Warwickshire, and Bury, Lancashire.

While UPS is a major player in the United States, the Atlanta-based firm's operations in the UK are smaller, with 7,200 staff and a head office at Feltham, Middlesex.

TNT has agreed an improved 5.2 billion euro (£4.4 billion) takeover offer from its US rival that would see it expand across Europe and several emerging markets and create a company with annual sales of 45 billion euros (£37.4 billion) and 475,000 employees worldwide.

While UPS said the merger would enhance prospects for both sets of employees, there is also the prospect of job losses as the group looks to make up to 550 million euros (£457 million) of cost savings in four years.

Germany's Deutsche Post DHL has called on regulators to look carefully at the deal, which would be the biggest yet acquisition for UPS and has yet to be approved by shareholders.

But the merger is not expected to face serious opposition from anti-trust authorities, as TNT has virtually no presence in the US, while the European market is highly fragmented.

The offer comes after years of speculation about the future of the Dutch delivery company, which was split from the Dutch mail company PostNL and listed last year.

Last month, TNT reported losses of 173 million euros for its fourth quarter, amid rising fuel costs and the eurozone debt crisis, while revenues rose 2.8% to 1.85 billion euros. Days earlier it had rejected a slightly lower offer from UPS.

UPS was started in Seattle in 1907 when 19-year-old James E Casey borrowed 100 US dollars from a friend and established the American Messenger Company, which ran errands and delivered packages.

It now covers more than 220 countries and employs 398,300 staff with revenues of $53.1 billion.

PA

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: Graduate Recruitment Resourcer

£20000 per annum + commission: SThree: Sthree have an exciting opportunity for...

Recruitment Genius: Telesales Executive - OTE £32,000+

£18000 - £32000 per annum: Recruitment Genius: A Telesales Executive is requir...

Ashdown Group: Marketing Manager - B2B, Corporate - City, London

£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...

Neil Pavier: Commercial Analyst

£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...

Day In a Page

General Election 2015: The masterminds behind the scenes

The masterminds behind the election

How do you get your party leader to embrace a message and then stick to it? By employing these people
Machine Gun America: The amusement park where teenagers go to shoot a huge range of automatic weapons

Machine Gun America

The amusement park where teenagers go to shoot a huge range of automatic weapons
The ethics of pet food: Why are we are so selective in how we show animals our love?

The ethics of pet food

Why are we are so selective in how we show animals our love?
How Tansy Davies turned 9/11 into her opera 'Between Worlds'

How a composer turned 9/11 into her opera 'Between Worlds'

Tansy Davies makes her operatic debut with a work about the attack on the Twin Towers. Despite the topic, she says it is a life-affirming piece
11 best bedside tables

11 best bedside tables

It could be the first thing you see in the morning, so make it work for you. We find night stands, tables and cabinets to wake up to
Italy vs England player ratings: Did Andros Townsend's goal see him beat Harry Kane and Wayne Rooney to top marks?

Italy vs England player ratings

Did Townsend's goal see him beat Kane and Rooney to top marks?
Danny Higginbotham: An underdog's tale of making the most of it

An underdog's tale of making the most of it

Danny Higginbotham on being let go by Manchester United, annoying Gordon Strachan, utilising his talents to the full at Stoke and plunging into the world of analysis
Audley Harrison's abusers forget the debt he's due, but Errol Christie will always remember what he owes the police

Steve Bunce: Inside Boxing

Audley Harrison's abusers forget the debt he's due, but Errol Christie will always remember what he owes the police
No postcode? No vote

Floating voters

How living on a houseboat meant I didn't officially 'exist'
Louis Theroux's affable Englishman routine begins to wear thin

By Reason of Insanity

Louis Theroux's affable Englishman routine begins to wear thin
Power dressing is back – but no shoulderpads!

Power dressing is back

But banish all thoughts of Eighties shoulderpads
Spanish stone-age cave paintings 'under threat' after being re-opened to the public

Spanish stone-age cave paintings in Altamira 'under threat'

Caves were re-opened to the public
'I was the bookies’ favourite to be first to leave the Cabinet'

Vince Cable interview

'I was the bookies’ favourite to be first to leave the Cabinet'
Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat