FedEx buys TNT

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saratoga
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FedEx buys TNT

Post by saratoga » 07 Apr 2015, 10:55

Hello

I found this morning this article. It is only in Dutch.

http://deredactie.be/cm/vrtnieuws/economie/1.2296642

BRU
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Re: Fed ex buying TNT

Post by BRU » 07 Apr 2015, 11:39

U.S. courier delivery company FedEx has highlighted its intentions to expand globally with a planned purchase of Dutch-based rival TNT Express on Tuesday morning.

The deal is an all-cash public offer that values the European company at $4.8 billion and conditionally means that shares of TNT Express would be offered at 8 euros each. The offer is being priced at a 33 percent premium compared to its current value, according to the joint press release, with both firms anticipating that the offer would close in the first half of 2016.

It would also mean the combined European headquarters of the two firms would be in Amsterdam, the Netherlands, and Fedex stated in the press release that new debt arrangements would help fund the agreement. Shares of TNT Express popped 30 percent at the open on Tuesday.

The tie-up would "transform" its European capabilities and accelerate global growth and allow its customers to enjoy access to an enhanced global network.

"We believe that this strategic acquisition will add significant value for FedEx share owners, team members and customers around the globe. This transaction allows us to quickly broaden our portfolio of international transportation solutions to take advantage of market trends," chairman and chief executive of FedEx Frederick Smith, said in the release on Tuesday morning. Existing employment terms of TNT Express would be respected and the Dutch firm's airline operations would be divested, it also stated.

In early 2013, antitrust regulators from the European Union blocked a bid by UPS for TNT Express, expressing concerns that the deal wasn't ensuring enough concession to make sure consumers wouldn't lose out.

On Tuesday, FedEx and TNT Express said they were confident that anti-trust concerns, if any, could be addressed adequately in a timely fashion. FedEx Europe President David Binks told CNBC Tuesday that he thought regulators would find it a "good for the market" with the tie-up creating a strong third competitor in the region. He also said that TNT was a very complementary and cultural fit for his firm.

Michael Browne, a fund manager at Martin Currie, believed the deal marked TNT Express being put out of its "misery at long, long, long last." "The margins of this business are awful," he told CNBC Tuesday. "There are going to be one or two delivery companies in each country because it's an incredibly asset heavy, high cost, very low margin business."

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Re: Fed ex buying TNT

Post by Passenger » 07 Apr 2015, 11:52

Bloomberg: "...TNT, whose management will stay in place after the change of ownership, plans to dispose of its airline operations to appease regulators. The company has started making some preliminary inquiries about possible buyers, FedEx said..."

http://www.bloomberg.com/news/articles/ ... -8-billion

http://www.reuters.com/article/2015/04/ ... 6G20150407

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Established02
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Re: Fed ex buying TNT

Post by Established02 » 07 Apr 2015, 12:27

De verschillende diensten van FedeX zaten lang verspreid over verschillende locaties in het Brusselse. Einde vorig decennium lanceerde de groep dan een project om alles te groeperen in La Hulpe (Terhulpen) in Waals-Brabant. Dat mislukte uiteindelijk, waarop FedEx overwoog ons land te verlaten. Maar dan sloot de groep een huurovereenkomst met de vastgoedgroep Befimmo voor 4.000m2 in het gebouw Central Gate in het hartje van Brussel.
http://www.tijd.be/ondernemen/transport ... 8-3084.art

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sn26567
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Re: FedEx buys TNT

Post by sn26567 » 07 Apr 2015, 14:27

See full (long) press release: https://www.aviation24.be/airlines_press_r ... ss-shares/

Significant for Belgium:
  • TNT Express hub in Liege will be maintained as a significant operation for the group going forward.
  • TNT Express’ airline operations will be divested, in compliance with applicable airline ownership regulations.
André
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BRU
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Re: FedEx buys TNT

Post by BRU » 07 Apr 2015, 14:29

So they will operate CDG / CGN and LGG as their hubs ? That is 3 hubs all close to each other in the same market...

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Re: FedEx buys TNT

Post by sn26567 » 07 Apr 2015, 14:39

I'm afraid that LGG for FedEx will become like BRU for DHL: a secondary hub. Anyway TNT Airways must be sold, since FedEx, as a non-EU company, can operate only one airline in Europe. To whom? That is the question!

The impact is likely to be worse for the 400 employees of FedEx in Brussels (its current European Headquarters). It is not sure whether they will receive their C4 or be transferred to Hoofddorp in The Netherlands.
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Re: FedEx buys TNT

Post by Acid-drop » 08 Apr 2015, 01:53

Its nothing clear yet

En: http://m.ft.com/cms/s/0/d20af6a8-dd2e-1 ... ab7de.html

Fr: http://www.rtbf.be/info/regions/detail_ ... id=8950272

But for some reason many people beleive liege could grow and that the fedex option is much better than ups.
why ?
My messages reflect my personal opinion which may be different than yours. I beleive a forum is made to create a debate so I encourage people to express themselves, the way they want, with the ideas they want. I expect the same understanding in return.

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Re: FedEx buys TNT

Post by Passenger » 08 Apr 2015, 10:31

sn26567 wrote:...Anyway TNT Airways must be sold, since FedEx, as a non-EU company, can operate only one airline in Europe. To whom? That is the question!
If there would be a poll, I vote for CMB / ASL Aviation.

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Re: FedEx buys TNT

Post by sn26567 » 08 Apr 2015, 11:00

Passenger wrote:I vote for CMB / ASL Aviation.
Indeed, De Tijd this morning mentions this possibility. ASL Aviation, a 51% subsidiary of CMB, was already a candidate to take over TNT Airways two years ago, when UPS tried to take over TNT Express.

This would keep TNT Airways at least in part in Belgian hands.
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Re: FedEx buys TNT

Post by Stij » 08 Apr 2015, 11:54

Maybe a future for TNT Airways, but for the hub in Liège... I'm very worried...

Question is: which is the most modern / largest facility? CGN or LGG (or CDG)...

Cheers,

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Established02
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Re: FedEx buys TNT

Post by Established02 » 08 Apr 2015, 14:36

Stij wrote:Question is: which is the most modern / largest facility? CGN or LGG (or CDG)...
Inside the ultra-modern FedEx Express hub in Cologne, Germany
https://www.youtube.com/watch?v=kcPYWDhjVek

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Re: FedEx buys TNT

Post by Stij » 08 Apr 2015, 17:35

Established02 wrote:Inside the ultra-modern FedEx Express hub in Cologne, Germany
https://www.youtube.com/watch?v=kcPYWDhjVek
Googled a bit myself and... maybe there's hope... TNT Liège can handle 30.000 packages an hour vs. 12.000 + 5.800 in Fedex hub in CGN, almost the double...

http://www.tntliege.com/48_TNT+Euro+Hub ... lance.html

Let's hope for Belgian aviation...

Cheers,

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Re: FedEx buys TNT

Post by sn26567 » 08 Apr 2015, 18:20

Stij wrote:Let's hope for Belgian aviation...
It's sure that the best chance for Belgian aviation is a takeover of TNT Airways by ASL Aviation (100% Belgian capital: 51% owned by CMB and 49% by 3P Air Freighters, a Petercam subsidiary). ASL itself is based in Dublin, Paris and Johannesburg, but a TNT Airways takeover will certainly mean a fourth base in Liège.

Currently ASL has no less than 69 aircraft: 2 A300s, 34 737s, 1 757, 10 ATR42s, 16 ATR72s, and 6 civilian C130s (called L382). It flies regularly for DHL, FedEx and La Poste (France). The addition of the 54 TNT aircraft (among which 35 in Liège: 4 747-400ERFs, 3 777-200s, 1 757, 15 737s, 12 BAe146-200s) would make it a large size cargo airline.
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Re: FedEx buys TNT

Post by BRU » 08 Apr 2015, 19:03

Think the airline will fly to any destination FedEx asks them, whatever the capital or owner. If FedEx / TNT choose LGG as second hub, the airline will operate from LGG. If it is CGN, they will be happy to fly for them ex CGN. So airline ownership will not have an influence on the decission taken by FedEx, it will be night slots, free capacity, subsidies, existing leases on the building, ...

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Re: FedEx buys TNT

Post by RoMax » 08 Apr 2015, 19:45

Two divisions of ASL Aviation are probably better known by name, Air Contractors and Europe Airpost. Both also operate ACMI pax operations in addition to the larger freight operations. For example the 757 operations of Aer Lingus are in fact operated by Air Contractors.

Regarding TNT, they said they would keep using Liege as a hub. That doesn't mean they'll keep their airfreight there, but it only makes sense. Cologne is a smaller hub for them than LGG, so I think they have to be more afraid for their jobs. But whatever happens, for Europe as a whole this takeover means a loss of jobs as always with takeovers or mergers that aim for the consolidation of activities.

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Re: FedEx buys TNT

Post by Atlantis » 08 Apr 2015, 20:02

This time is will be not that good news for LGG airport and the hub of TNT.

Fedex will concentrate all express shipments by air in CDG instead of using LGG further. Fedex will not have two or three European hubs. CDG will be THE European hub for all express shipments.
They agreed to relocate their HQ to Amsterdam/Hoofddorp with consequences for their own people at Machelen but all air transport will come to CDG.

So the consequences for LGG has to been seen after the full merger

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Re: FedEx buys TNT

Post by RoMax » 08 Apr 2015, 23:22

If they would want to centralise in CDG, I really don't understand the logic of opening up CGN as a secondary European hub in 2010. Did they already change their mind?

Only benefit of CGN above LGG in the combined FedEx-TNT system is that LGG is closer to CDG and CGN is slightly better located to serve as a Central and Eastern European hub (the reason for which FedEx opened that second hub). And maybe the new state-of-the-art facilities in CGN as it is a new hub, however I'm not that well aware of TNT's facilities in LGG in that aspect.

But FedEx' communication about the take-over is very pro-Liege. E.g. these two quotes from a Financial Times article:
"FedEx hopes by building scale in Europe to benefit from feeding extra parcel volume into facilities such as TNT’s air cargo hub in Liege, Belgium."

"Many of the benefits of that increased global scale will be felt, if the deal goes through, at Liege airport, FedEx’s hub in Memphis, Tennessee, and other big sorting centres."

http://www.ft.com/cms/s/0/d20af6a8-dd2e ... z3WkrXc4Ep

FedEx explains that they want to achieve lower pick-up and delivery costs in Europe through the TNT network, that's something you can't do when you centralise everything at one hub which is far from integrated in the existing TNT network. Centralising everything in CDG will come at a very high cost, with limited consolidation benefits in return.

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Re: FedEx buys TNT

Post by sn26567 » 08 Apr 2015, 23:53

RoMax wrote:And maybe the new state-of-the-art facilities in CGN as it is a new hub, however I'm not that well aware of TNT's facilities in LGG in that aspect.
TNT will continue to invest 70 million euros in LGG until 2016: new sorting equipment, new X-ray scanners, new automatic handling systems for small packages and documents, etc.

The spokesman of TNT Express Cyrille Gibot said yesterday that Liège will continue to play an important role in the European network. FedEx recognises the quality of the site and its personnel. Thus Gibot continues by saying that the merger would probably not have an impact, or at most a limited impact, on the number of staff (ground and pilots) at Liège Airport.
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Re: FedEx buys TNT

Post by liege-bierset » 09 Apr 2015, 01:18

sn26567 wrote:
RoMax wrote:And maybe the new state-of-the-art facilities in CGN as it is a new hub, however I'm not that well aware of TNT's facilities in LGG in that aspect.
TNT will continue to invest 70 million euros in LGG until 2016: new sorting equipment, new X-ray scanners, new automatic handling systems for small packages and documents, etc.

The spokesman of TNT Express Cyrille Gibot said yesterday that Liège will continue to play an important role in the European network. FedEx recognises the quality of the site and its personnel. Thus Gibot continues by saying that the merger would probably not have an impact, or at most a limited impact, on the number of staff (ground and pilots) at Liège Airport.
Yes, this is correct, when new investment will be on stream (next year), sorting capacity should be increased by 50% to some 45,000 items/H. At that time TNT Euro Hub should be the most efficient of the 3 sites.
FDX are also very much interested by the road network developed by TNT, It takes 2 or 3 days but costs half the price to the customer.

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