FedEx is one of the largest shipping companies in the United States. The company has a good presence in Europe, too. However, FedEx desired more. Until now, FedEx has only seen large success in its air-express deliveries. FedEx had a minimal presence on ground delivery business in Europe. This month, FedEx announced that it would be purchasing TNT Express, which is headquartered in the Netherlands. The company is known as one of the largest couriers in the UK, but the competition is still strong.
TNT spokespeople seem excited about the change. The acquisition is intended to create a strong competition for larger companies already functioning in Europe, such as UPS. With FedEx excelling in the air and TNT Express being proficient with ground services, the deal seems like a no-brainer. The goals for TNT Express could not be achieved if the company were to remain a standalone operation. There are quite a few companies already working in the UK, and TNT will achieve better successes by partnering with FedEx. The takeover is scheduled for the first half of 2016, and FedEx has agreed to keep TNT’s branding for “an appropriate period” before converting everything over to FedEx logos and further branding.
It seems like a positive business solution for both TNT Express and FedEx to merge together. FedEx already has a network of customers it works with for international delivery as does TNT. Combining forces allows these two companies to pool their resources, customers, and knowledge to better compete with others in their arena.