FedEx Corp. will purchase Dutch rival TNT Express for about $4.8 billion, the companies announced April 7.The deal will give FedEx a larger foothold in the growing European market, which is dominated by UPS and DHL Express.
The market is difficult for outsiders to crack, the Wall Street Journal reported. Challenges include inaccessible apartment buildings in dense urban areas, and each country has its own rules and competitors.
The all-cash purchase is expected to close during the first half of 2016.
The deal is subject to regulatory approval, but the companies say they don’t expect major hurdles. Two years ago, UPS’s proposed $7 billion takeover of TNT was scuttled due to antitrust issues.