Fedex Intends To Buy European TNT

FedEx, the second largest express group in the United States, is now in contact with the TNT group, the largest express company in Europe, to discuss acquisitions, according to foreign news quotes from the financial times.

According to the news, if FedEx purchase is successful, it will be possible to enter the European express market, thus making it possible to become the second largest express company in Europe.

Shafer J, spokesman of TNT group, headquartered in Holland, and FedEx Corp spokesman Bunn, refused to respond to any enquiries by e-mail or telephone, which added to the mystery of the purchase.

According to the view of a long-term professional in the express industry, TNT Express has always had its own unique views on the development and development of the global express industry. Especially, there is a discrepancy in the Asian market view. The development potential is far from promising and the competition is still not strong. Even though the group already has the first Boeing 747-400 large cargo aircraft, so far, the large cargo aircraft has not yet taken the pport task to the Asian regional routes, and TNT has so far failed to undertake a large cargo pport route for Eurasian hot spots. This pessimistic thought seems to have a special market in the recent operating environment of high oil prices.

In the Amsterdam stock market, Rabo analyst Philip scolt believes that the acquisition of investments is "reasonable".

"You can imagine connecting the two networks between Europe and the United States.

"FedEx, based in Memphis, announced its first quarter results in June. It suffered the first loss in 11 years due to the drag of high oil prices and the weak US economy. Customers prefer to choose inexpensive Express Services on their consumption behavior.

FedEx is not optimistic about the local express service in the United States, and gasoline spending on highway trucks has soared.

On the contrary, the parcel delivery service in overseas markets recorded a marked increase. Last year, it recorded a business income of $17 billion 600 million, an increase of 1.44 times, accounting for more than half of the total revenue.

FedEx's total assets were $22 billion 900 million, which was $73.44 a share last Friday when the stock market closed, but the stock has fallen by 17% since the beginning of this year.

The total assets of TNT are 7 billion 20 million euros, equivalent to 11 billion 200 million US dollars, but the stock also fell 35% this year, and last Friday closed at 18.51 euros per share.

Rabo securities analyst scolt said, "if TNT's share price is still at a low level, it is not surprising that the market has heard the news of takeover.

He thinks it's time to buy stocks, and the share price is expected to rise to 36 euros.

He said that investors are unlikely to accept a typical takeover of shares below 30% of the current level, and that they may rise to 40 euros per share in the future.

In the European express delivery market, Holland TNT Express Group is the two largest competitor to DHL Global Freight (DHL) under the German post group, but the situation seems to be changing quietly. In May of this year, DHL withdrew from the US express market, and the parent company, Germany post, agreed with the United States package UPS to take over the delivery of DHL in the US market with the aim of saving DHL in a serious loss in the US market.

In June 24th, UPS issued a warning of a decline in quarterly earnings. The company is also interested in acquiring TNT.

TNT has already sold its assets in logistics and cargo management departments, concentrating on expanding its mail and parcel business in Europe, South America and Asia. The group has 1752 postal outlets throughout Holland, handling 2 to 3 percentage points of us overseas mail every year, which is equivalent to US $17 billion 300 million, equivalent to US $17 billion 300 million.

In 2007, FedEx's operating income was $37 billion 950 million. The consumer products of Japan's Sony Corp were its major customers, dealing with the distribution of music CD and video game consoles. Another major business was the colored plastic shoes produced by American Crocs company in imitation of Holland clogs.