- 4 May 2016
- Transport / Logistics Services
China has given the green light to the FedEx / TNT merger. The Ministry of Commerce (MOFCOM) signed off the deal on Friday 29th April.
In a statement issued jointed by FedEx and TNT on Friday, David Bronczek, President and CEO of FedEx Express said, “I want to thank the team members who collaborated with regulatory authorities around the world to help us reach this important acquisition milestone.
“As we work towards closing the acquisition, we look forward to welcoming TNT Express team members to the FedEx family of companies as we expand our portfolio of solutions and connect even more people and possibilities.
“With this final regulatory approval, we are one step closer to making the vision of combining the complementary networks of FedEx and TNT Express a reality,” said Tex Gunning, Chief Executive Officer, TNT Express. “This intended acquisition will bring value for our customers, shareholders and employees.”
After their shareholders agreed in principle the two delivery and logistics companies have had to go to all the major territories in which they operated to get clearance. Where the European Commission and US authorities were the most likely to refuse (the EC rebuffed UPS attempt to buy out TNT) only Brazil has been a problem so far, with an appeal allegedly from UPS against their decision that was overturned.
Now MOFCOM have approved the deal, the two companies are free to make the final moves to secure the deal. Under the original terms of the agreement, this now must be done by next Friday, 13th May.