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NEW YORK, April 7 (UPI) -- FedEx agreed Tuesday to acquire Dutch shipping service TNT Express for $4.8 billion to expand its operation in Europe.
The all-cash deal will give FedEx the ability and resources to compete with DHL and UPS abroad. The EU previously blocked a bid from UPS because there was concern it would lower competition and cause an increase in prices.
FedEx agreed to pay 8 euros per share, which is a 33 percent premium on Thursday's closing price.
"FedEx had a problem in Europe. Rather than going into a lengthy and painful process to build a full network of its own, the acquisition of TNT is a logical one as this is achieved in one stroke," said Kepler Cheuvreux, an analyst at Andre Mulder.
Shares in TNT jumped 30 percent after the news broke.
The FedEx deal is expected to go through because of its small presence than UPS in Europe.
FedEx buys TNT shipping service for $4.8 billion - UPI.com
