Today we announced the intended acquisition of TNT by FedEx. Many of you will have absorbed this news with mixed feelings. For some, it may even come as a shock. The Outlook strategy and TNT-The People Network were launched in 2014 and we are all working hard to create a new bright future for all stakeholders of TNT. It is exactly this strategy and the hard work we have all put in over the past months, as presented at our Capital Markets Day just weeks ago, that has triggered FedEx to launch a bid on all of our outstanding shares. So this bid is a testimony to your good work and intrinsic value of TNT.
So how should we view this new development? Whilst the Board did not initiate a possible takeover by FedEx, we have come to the conclusion that this is a good development for our stakeholders and particularly for our people and customers. It is important to realise that our business is complementary to FedEx’s. FedEx is of course huge in North America and its trade lane Asia-US is obviously highly significant. But it has relatively small operations in Europe, South America and the Middle East. Because our positions are very complementary, the risk of significant job losses is limited. FedEx is committed to invest in and retain our people. A very important point is that FedEx will establish its European head office in Hoofddorp. Also, our air hub in Liege will play an important role in the plans of FedEx, while TNT Airways will become a key service partner to the FedEx network, which is good news.
In our industry, scale, scope and competencies matter. A global network is needed in a world where customers and trade are increasingly global. TNT will now become part of a large and truly global company and with that, we increase our ability to service all stakeholders even better. TNT people will have access to the career and development opportunities that have made FedEx such a successful company. Our customers will have access to a global network and the latest technology to service their customers. Last but not least the intended acquisition will also be beneficial to our shareholders.
Of course, there will be changes that will affect us. For example, our name will at some point be replaced by the brand name FedEx – one of the strongest and most reputed brands in the world. But given our ‘orange hearts’, letting go of our brand will hurt.
Now that an acquisition of TNT by another company has yet again become a topic, the question that obviously comes to mind is whether we should be happy with FedEx rather than with someone else. The answer is a firm "yes”. FedEx is the vision of one man: Fred Smith. He started the company in 1973 and is still the Chairman/CEO and largest shareholder and today is as passionate about the company as he was in his younger days. Like TNT, he believes, that the service industry is all about committed People delivering superior Service and that profits follow. So from a cultural perspective, there could not be a better fit.
Having spoken with people from FedEx over the recent weeks and knowing the outstanding performance of that company, we as the whole Management Board are convinced that the intended acquisition of TNT by FedEx is the right next step for all stakeholders. If the bid is successful, FedEx will bring us a more secure future in a robust and growing company.
In the next few months we will keep you closely informed. This acquisition is at this point in time only an intention – employee representatives, shareholders as well as regulators will have to give their opinion. It is important that we all continue to work as engaged and committed, fully focussed on servicing our customers, as we did before and implement the Outlook strategy relentlessly. Remember it’s our own future that we are securing irrespective of who the owner is!
Today we announced the intended acquisition of TNT by FedEx. Many of you will have absorbed this news with mixed feelings. For some, it may even come as a shock. The Outlook strategy and TNT-The People Network were launched in 2014 and we are all working hard to create a new bright future for all stakeholders of TNT. It is exactly this strategy and the hard work we have all put in over the past months, as presented at our Capital Markets Day just weeks ago, that has triggered FedEx to launch a bid on all of our outstanding shares. So this bid is a testimony to your good work and intrinsic value of TNT.
So how should we view this new development? Whilst the Board did not initiate a possible takeover by FedEx, we have come to the conclusion that this is a good development for our stakeholders and particularly for our people and customers. It is important to realise that our business is complementary to FedEx’s. FedEx is of course huge in North America and its trade lane Asia-US is obviously highly significant. But it has relatively small operations in Europe, South America and the Middle East. Because our positions are very complementary, the risk of significant job losses is limited. FedEx is committed to invest in and retain our people. A very important point is that FedEx will establish its European head office in Hoofddorp. Also, our air hub in Liege will play an important role in the plans of FedEx, while TNT Airways will become a key service partner to the FedEx network, which is good news.
In our industry, scale, scope and competencies matter. A global network is needed in a world where customers and trade are increasingly global. TNT will now become part of a large and truly global company and with that, we increase our ability to service all stakeholders even better. TNT people will have access to the career and development opportunities that have made FedEx such a successful company. Our customers will have access to a global network and the latest technology to service their customers. Last but not least the intended acquisition will also be beneficial to our shareholders.
Of course, there will be changes that will affect us. For example, our name will at some point be replaced by the brand name FedEx – one of the strongest and most reputed brands in the world. But given our ‘orange hearts’, letting go of our brand will hurt.
Now that an acquisition of TNT by another company has yet again become a topic, the question that obviously comes to mind is whether we should be happy with FedEx rather than with someone else. The answer is a firm "yes”. FedEx is the vision of one man: Fred Smith. He started the company in 1973 and is still the Chairman/CEO and largest shareholder and today is as passionate about the company as he was in his younger days. Like TNT, he believes, that the service industry is all about committed People delivering superior Service and that profits follow. So from a cultural perspective, there could not be a better fit.
Having spoken with people from FedEx over the recent weeks and knowing the outstanding performance of that company, we as the whole Management Board are convinced that the intended acquisition of TNT by FedEx is the right next step for all stakeholders. If the bid is successful, FedEx will bring us a more secure future in a robust and growing company.
In the next few months we will keep you closely informed. This acquisition is at this point in time only an intention – employee representatives, shareholders as well as regulators will have to give their opinion. It is important that we all continue to work as engaged and committed, fully focussed on servicing our customers, as we did before and implement the Outlook strategy relentlessly. Remember it’s our own future that we are securing irrespective of who the owner is!
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