US courier firm FedEx has signed an agreement to buy Dutch parcel delivery company TNT Express for €4.4bn (£3.2bn), in a move to expand its European operations.
The rivals reached a conditional agreement on a public offer of €8 (£5.80) per ordinary TNT Express share, which represents a premium of 33% over the closing price of April 2.
FedEx said the deal will combine TNT Express’s strong European capabilities and FedEx’s strength in other regions, including the US and Asia.
The European regional headquarters of the combined companies will be in Amsterdam and the deal is expected to close in the first half of next year.
Frederick Smith, chairman and chief executive of FedEx Corporation, said: “This transaction allows us to quickly broaden our portfolio of international transportation solutions to take advantage of market trends – especially the continuing growth of global ecommerce – and positions FedEx for greater long-term profitable growth.”