According to news articles, the integration process is expected to take a while. In the meantime, it appears TNT will continue to be run as a separate entity.
It's doubtful DHL will remain quiet for much longer.
From today's Ti newsletter:
After years of rumors and a comparatively short
offer-period, UPS has agreed to buy TNT Express for $6.77bn.
In an announcement this morning (Monday 19th) the
boards of the two companies issued a joint statement outlining the price and
the conditions of the sale. The statement also included a report on the
position of the dominant shareholder, Post NL, committing it “irrevocably” to
the deal.
It appears the TNT Express will continue as a separate
entity for some time rather than its assets being wholly absorbed into the
European divisions of UPS. The statement asserted that “all employee rights,
covenants, and benefits under current ownership will be respected.” This may
refer to agreements with the workforce over pensions and other benefits which
were rumored to be an important aspect of the negotiations to buy the company.
Importantly the statement also continues: “UPS undertakes to
create a meaningful center of excellence for marketing, sales and operations in
the Netherlands. UPS recognizes the significant value of TNT Express’
operations, assets and people in Liege and will seek to continue the future utilization
of these operations, assets and people within the combined group.” This appears
to suggest that UPS’ European headquarters will move to Amsterdam and more
clearly that the Liege hub will remain in operation. The implications for
existing UPS operations in Europe may be significant.
UPS is financing the deal out of a mix of US$3bn in cash and
“new debt arrangements.”
Stay tuned. More to come....
