By Chelsey Dulaney
FedEx Corp. and TNT Express NV on Friday said they are making
"timely progress" on their $4.8 billion deal, though the companies
said it could take up to a year to gain regulatory approval.
FedEx agreed in April to buy Dutch package-delivery company TNT,
making an end run around rival United Parcel Service Inc. and
positioning itself to capitalize on the growth of e-commerce in
Europe.
FedEx already has a sizable air-express delivery operation in
Europe, but it lags behind in the ground-delivery business.
Acquiring TNT would give it an established door-to-door road
network in Europe that connects more than 40 countries, saving the
U.S. company the time and money required to build one from
scratch.
But the all-cash FedEx deal is subject to approval by European
Union regulators. In January 2013, EU regulators quashed an effort
by UPS to acquire TNT for about $7 billion, unraveling an agreement
that was about a year in the making.
FedEx on Friday said it plans to submit its offer to Netherlands
regulators for approval by June 30, the deadline under Dutch
law.
The deal must also receive antitrust clearance in China, Brazil
and the U.S., the companies said, adding that they are confident
regulators will green-light the deal.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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