UPS: Bringing the Brown Overseas

UPS recently spent $6.77 billion purchasing Dutch rival TNT Express. This deal comes after weeks of negotiations and UPS can now better compete with DHL. According to estimates, UPS will have between ¼ and 1/3 of the European package delivery market. UPS sales will grow from 26% to 36% with the acquirement of TNT.  UPS shares rose 4.2 percent in afternoon trading; they had total sales of $53.11 billion last year and it expects sales of $60 billion with TNT. UPS also was in competition with FedEx Corp. for the acquisition of TNT. By 2015, UPS expects savings to grow from $525 to $725 million a year.  This purchase will make UPS a shipping powerhouse worldwide and FedEx will have to work hard to try to stand up to this new shipping magnate. UPS was always one of the nation’s biggest but now it will be one of Europe’s biggest as well.

The full article can be found at: http://www.lompocrecord.com/business/ups-snags-europe-s-no-package-delivery-outfit/article_4c976b15-dd2c-51d8-9021-a34c109e0e54.html