United Parcel Service Inc., already the world’s largest package delivery company, plans to get bigger by purchasing TNT Express, a major Dutch shipping and logistics company.
On March 19, UPS agreed to a price of 9.50 euros per ordinary TNT Express share, valuing the company at 5.16 billion euros, or $6.77 billion.
UPS leaders said the acquisition will enhance its express and logistics capabilities in Europe, boost its operations in Asia and Latin America and save the companies $525 million to $725 million per year.
The new company will have revenues of more than $60 billion, with 36 percent coming from outside the U.S., compared to UPS’s current 26 percent, according to a news release.
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