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EU/US: FedEx to use debt to fund TNT €4.4 billion deal

By  |  May 13, 2015

FedEx Corp. on Wednesday detailed how it will pay for its EUR4.4 billion acquisition of TNT Express NV, saying it will use mostly debt to finance the deal.

The company said it has secured EUR2.0 billion in fully committed debt financing and can use EUR900 million from an existing credit facility. The company also said it can pay EUR1.5 billion of the offer in available cash.

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.

 

Full content: The Wall Street Journal

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