Legal Business Blogs

Dealwatch: Bakers and A&O deliver as FedEx looks to buy TNT for €4.4bn

Baker & McKenzie and Allen & Overy (A&O) have both won places advising on US delivery service FedEx’s €4.4bn agreement to buy Dutch rival TNT Express as the company looks to boost its European capabilities and global footprint.

A cross-border Bakers team advised FedEx led by the firm’s London-based global head of M&A Tim Gee, alongside corporate partner Henk Arnold out of Amsterdam. Benelux legal adviser NautaDutilh also provided counsel to FedEx with corporate partner Christiaan de Brauw advising, while JP Morgan Securities provided financial advice.

A&O represented TNT on the deal, which values the company at a 33% premium over its closing price on 2 April 2015, with a team led by Amsterdam-based partner Jan Louis Burggraaf. Goldman Sachs International and Lazard were financial advisors.

Under the agreement, FedEx will offer €8 in cash per ordinary TNT share and see it gain access to TNT’s European road delivery network while offering existing TNT customers its global distribution platform. Both will contribute towards building an integrated global network, combining TNT Express European capabilities and FedEx’s offering in North America and Asia.

Subject to gaining regulatory approval, the two companies are looking to close the deal in the first half of 2016.