FedEx to buy TNT

TNT Airways BAe 146-300QT OO-TAH

TNT Airways BAe 146-300QT OO-TAH at Talinn (Anna Zvereva)

FedEx Express has agreed to buy TNT Express for EUR4.4 billion (USD4.8 billion). The deal needs to be approved by TNT’s shareholders and by European Union competition authorities. Should the deal be approved, the two companies will be integrated. The TNT brand name would be retained at first, but would eventually be superseded by that of FedEx. TNT’s Liege logistics hub would be retained. Three years ago, UPS had agreed to buy TNT, but the deal was eventually abandoned after it became clear that European Union authorities would block the deal on anti-trust grounds. Under that deal, TNT Express’ subsidiaries TNT Airways and Pan Air Líneas Aéreas were to have been sold (to ASL Aviation Group), as only airlines that are at least 50% owned and effectively controlled by one or more EU member states and/or nationals of EU member states can operate intra-EU routes without restrictions. Presumably, the same would apply in this case.

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