U.S. supply chain giant FedEx Corporation said that measures to actualize the takeover of TNT Express are going according to plan, but that obtaining the required competition clearance could take about a year.
In a joint press release, FedEx and TNT Express said they are “making timely progress on the preparations” for the offer by the Tennessee-based company to buy the shares of their European competitor.
On April 7, the two announced that FedEx intends to make a public cash offer for all issued and outstanding ordinary shares in the capital of TNT Express at an offer price of EUR8 each share, placing the value of the purchase at EUR4.4 billion (US$4.8 billion).
In its latest update, FedEx said it expects to submit a request for review and approval of its offer with the Netherlands Authority for the Financial Markets (AFM) before June 30, 2015, which is the date by which under Dutch law a request for approval must be submitted to the AFM.
In addition, FedEx and TNT Express confirmed that the process to obtain the required regulatory approvals for the merger “is proceeding without delays.”
FedEx has to obtain competition clearances in the European Union, China, Brazil, and the U.S. if applicable that the merger will not violate anti-trust laws. The two companies rationalized the merger as enabling them to emerge as “a strong global competitor in the transportation and logistics industry.”
However, the two anticipate it will take time to acquire the clearances.
“Although FedEx and TNT Express aim to obtain the required regulatory clearances as soon as possible, it is noted that completing the formal clearance procedures could take up to one year. As such, it may be required to obtain an exemption from the AFM to (further) extend the offer period,” it said.
Photo: Doug
