FedEx to Formally Launch $4.8 Billion Offer for TNT Express on Monday

By Ellen Proper

AMSTERDAM--FedEx Corp. (FDX) said Friday it will formally launch its $4.8 billion offer for Dutch rival TNT Express NV (TNTE.AE) next week and that it is optimistic the deal will get the necessary regulatory approval.

FedEx said its offer of EUR8 a share will be launched Monday and expire on Oct. 30, and will be subject to a minimum acceptance level of 95% of TNT shares. The threshold can be lowered to 80% if TNT's shareholders approve the takeover at a shareholders meeting on Oct. 5.

FedEx last month hit a bump with the planned acquisition after the European Commission said it opened an in-depth investigation into the transaction, amid concerns about the combined group's dominance in the international delivery of small packages in some European markets.

FedEx, however, said the process of obtaining regulatory approval remains on track. Responding to the commission's concerns, FedEx said that the deal "presents a pro-competitive proposition for the provision of small package delivery services within and outside Europe."

FedEx also said that TNT's chief executive, Tex Gunning, would resign once the deal is completed. Mr. Gunning will continue to serve on the integration committee of the merged company for a period of six months.

Write to Ellen Proper at [e-mail]

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August 21, 2015 03:07 ET (07:07 GMT)

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