UPS has clinched its takeover of TNT Express in a deal which values the Dutch target at €5.16 billion. UPS is already the first customer in terms of volume for Barcelona Airport, closely followed by DHL. TNT and UPS combined volume will convert the merged company in the biggest air cargo logistic operator for Barcelona.

The speed of yesterday’s announcement surprised some, but it followed a month of negotiations following the initial rejection by TNT of a €4.9 billion offer on 17 February.

The €9.50 per share takeover price is 50 cents up on the previous bid and represents a 54% premium over February’s share price, a price some commentators have deemed too high.

UPS is keen, however, to expand its European footprint and the transaction will create a global leader in the logistics industry with more than €45 billion in annual revenues.

John Manners-Bell, a transport analyst at Ti, said the deal made good strategic sense for UPS.

“By buying TNT, UPS has sent a clear message that it believes in the long-term prospects of the European economy.

“We should not forget that combined economic output of the European Union is comparable with the US, in terms of GDP.

“In addition to this, globalisation will mean that trade, facilitated by such companies as UPS, will see increasing growth as international supply chains become more integrated.”

Ti estimates that the combined UPS-TNT entity will boast a 35% market share, just short of DHL’s 39%.

Manners-Bell added: “In some ways, it’s a brave move, especially considering the state of the eurozone economy. However UPS has taken a smart long-term decision which will benefit it in the years to come.”

 

Source: BARDC & ifw 

 

posted by flytobarcelona.org

Barcelona Air Route Development Committee promotes Barcelona Airport intercontinental flights.