U.S.-based United Parcel Service (UPS) is said to be close to inking an agreement with TNT Express on the terms for acquiring the Dutch parcel delivery company.
TNT Express earlier turned down a EUR4.9 billion takeover bid by UPS, but both parties said talks were ongoing.
UPS tendered the bid as some shareholders of the Amsterdam-based TNT Express urged for a company-board shakeup and increase in shareholder value after the European group suffered falling revenues as the global economic slowdown prompted customers to choose lower-cost shipping over air transport.
Reports said the two companies may make an announcement about the pact over the following days.
The acquisition of TNT Express, the second biggest package delivery firm in Europe, will open up the region’s market to UPS, the world’s largest package delivery service, and boost the latter’s presence in Europe over rival FedEx.
FedEx was expected to make its own proposal to TNT after the UPS bid was declined, but so far no offer has been forthcoming.
Photo: TNT Express
