Will UPS’s acquisition of TNT cause FedEx to under deliver in Europe?

China counterfeitsUPS acquires TNT and the global big four logistics companies are down to the big three. A corporate strategy article by Thunderbird students Jeffrey Karlsson, Lauren Liberto, Gregory Pijal, Hugo Riquelme and Kenneth Wallace

The largest express-parcel company in the world, UPS, recently announced the intent to purchase Dutch company TNT Express on March 19, 2012 in order to expand its reach, resources, and customer base primarily in Europe where TNT already has a significant ground business.  The transaction is expected to close in the third quarter of 2012.[i] TNT Express started in Australia in 1946 with meager beginnings having only one truck in its fleet[ii], however, since then the company has expanded worldwide. In 1996 Dutch company KPN acquired TNT, and in 2005 TNT became the official merged company name. Although TNT operates around the world, UPS’s main focus in the merger was to boost its European presence. Today TNT Express UK & Ireland employs 11,000 workers, delivers 100 million items a year for its UK customers, operates in 70 hubs, and has a fleet of 3,500 delivery vehicles, which will aid UPS in gaining greater access to European businesses.[iii]

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