TNT Express gobbled up by UPS

UPS, the US package delivery company, has agreed a deal to buy its European rival TNT Express for €5.1bn.  It is already the world's largest package delivery company.  Speculation has been rife of a tie-up between the two delivery companies.  UPS has been tracking TNT for some time and made an aborted bid in 2008.  The move would increase the American operator’s presence in Europe and would also give the US company a domestic network in China, where it has been keen to expand.

Last year the former TNT, Dutch-owned, was broken up into two distinct companies, TNT Express and the postal company PostNL.  

Scott Davis, UPS Chairman and CEO said that the TNT brand will eventually be dropped.  He intended to retain the Cologne-Bonn Airport operations as the main UPS air cargo hub in Europe.  The TNT Liege facility, which employs 1,400 people, will stay.  Currently TNT Express has fully owned operations in 65 countries.  Whilst for the most part traditional mail/post has declined, package delivery is booming, thanks to internet buying which has no real national barriers. www.ups.com

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