FedEx has highlighted its intentions to expand globally with a planned purchase of Dutch-based rival TNT Express on Tuesday morning. The deal is a 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. Both firms anticipate that the offer would close in the first half of 2016. FedEx stated in the press release that new debt arrangements would help fund the agreement. The tie-up would "transform" its European capabilities and accelerate global growth and allow its customers to enjoy access to an enhanced global network. 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.
