for folks that work overseas...the fallout of ups and tnt.

Discussion in 'UPSers International' started by coldworld, Aug 23, 2008.

  1. Coldworld

    Coldworld Well-Known Member

    looks like this weekend there will be talks with ups and tnt. looks like this deal is finally going to happen. Many U.S. upsers have no idea the size of tnt as a company in markets outside the usa. Can folks who have more knowledge of tnt please chime in and tell how this will effect ups and also dhl.
     
  2. Coldworld

    Coldworld Well-Known Member

    something else to consider, fedex will pretty much be left behind internationally if this deal goes through and will have to do some serious catchup. I wonder if fedex will try to purchase dhl....it sounds ridiculous, on so many different levels, but I wonder if it could ever happen.
     
  3. Leftinbuilding

    Leftinbuilding Active Member

    I don't think anyone would want DHL domestically. They are teetering on the brink anyway, so patience may get you their volume. I don't think ANYONE could purchase DHL internationally. As my kids used to say, "Too many dollars".
     
  4. Coldworld

    Coldworld Well-Known Member

    knowing how fedex seems to follow everything ups does, they are bound to pull a few billion out of the air and try to keep up. What would be their next move. This deal with tnt could be 10-15 billion, the biggest one time expense that ups has ever had. its pretty impressive to think about.
     
  5. Coldworld

    Coldworld Well-Known Member

    looks like it could be in the neighborhood of 19-23 billion from reports from the last day.
     
  6. BLACKBOX

    BLACKBOX Life is a Highway...

    I had the feeling that TNT was asking too much for what FDX was wanting to purchase it for. UPS bid if true (up to 15 bil) is just a staggering amount. Hope its worth it.
     
  7. LiL"Comet"

    LiL"Comet" New Member

    How big of a company is TNT, and where is it based at?
     
  8. haydendavid380

    haydendavid380 is property of UPS

    How much was spent on the Overnight deal? I thought it was only like 2 or 3 billion. Just curious.
     
  9. drewed

    drewed Shankman

    I could see a TNT deal going through, as well as a domestic buy out of DHL. The TNT deal would be worth 15-17 bil max and we could pick up the DHL domestic for about 2, since theyre pulling out of several states completely and we're already air lifting thier volume. If fdx bought out DHL domestically theyd have to contend with that agreement
     
  10. ups79

    ups79 Active Member

    Why would anyone, be it Fed-Ex or UPS, want to buy out DHL. What the heck do you think you would be buying, GOODWILL? Eventually their volume would end up at UPS or Fed-Ex when they went belly-up.
     
  11. drewed

    drewed Shankman


    Calm down spanky
    Domestic volume maybe but the more we get involved in the operation, when their intl volume comes up to get, the more likely we'll get it and thats what we're really after. DHL customers see improvement of service domestically do to the UPS agreement, theyll start moving their int'l volume to UPS, making DHL int'l ops less profitable, theyd want to dump that eventually and UPS would be there to sweep in.
     
  12. HEFFERNAN

    HEFFERNAN Huge Member

    I don't really want to bash UPS, but here's my say on a DHL takeover.

    75% of the people using DHL were screwed or hated using UPS or Fed EX or both

    The other 25% use DHL because of the cheaper price

    I just think the post office would get a lot of business if/when they go away. Then maybe they won't have to raise the price of a stamp every 1 1/2 years

    If UPS did buy DHL, they would have to figure how much of their volume would not jump on the brown bandwagon, and see if its worth it
     
  13. Coldworld

    Coldworld Well-Known Member

    ups hasnt spent more than 1+ billion on ANY company, so to think they would even consider spending this much is absolutely amazing. If this happens, ups will be the largest express company in europe, larger than dhl. Tnt also has a decent market share in some other parts of the world, they do deliver in 200 countries like ups does. This deal could very likely mean that ups will be the largest express and ground company in the world...period. This move will hurt fedex because it would almost put them so far behind, it would cost multi-billions to catch up. It would also hurt dhl. Tnt is a company that has over 120,000 folks, they are huge...many of the international upsers know tnt, I hope a few chime in here.
     
  14. Coldworld

    Coldworld Well-Known Member

    I dont know if they are ever going to go away. Management is so sure that they wont be around in 10 years, Im not so sure about this.They are huge overseas, but if ups does purchase tnt, it will for sure hurt them. It is interesting to think about.
     
  15. drewed

    drewed Shankman

    you got to spend money to make money, yea lets say 18bill buyout, but how much money would we make in turn? Tnt made just about 1 bill in profits last year, after consilidation of operations we could probably make it 1.2-1.4 a year, as long we showed profit in operations after the 2nd year of UPS operation i dont see the shareholders freaking out tooo much
     
  16. ups79

    ups79 Active Member

    Okay BUCKWHEAT!!!
     
  17. Vine yard

    Vine yard Guest

    Hello from Europe....
    TNT.....big player in Europe and Asia ( Europe - 1.DHL 2.TNT 3. UPS 4.Fedex Asia = the same ).
    A big money purchase yes....but think of the billion or so which would be spent on integration.
    UPS had major headaches with the Lynx integration...and that was in only one country...think of a worldwide integration.....

    DHL...I think Deutsch Post ( DHL's owners ) have finally realised the truth....and will drop DHL sooner rather than later....
     
  18. CBUK

    CBUK Member

    I think the deal for TNT is worth about 7 billion. It also involves an investment company taking on the Dutch mail contracts that TNT hold.

    The Lynx buyout in the U.K caused a few headaches and it was a 55 million deal. 7 Billion is big time but certainly a move in the right direction for UPS. We are on the brink of recession in the U.K and with rising fuel costs I think all the major players are looking at costs savings. DHL are now using UPS to ship all its air volume and this week AMTRAK went bust in the U.K overnight.

    Its a good time to buy because we can drive a harder bargain in the current climate.

    I thought a deal like this might take years but the subject keeps popping up which makes me think that its getting more and more likely.
     
  19. RPSman

    RPSman New Member

    Fed Ex is to buy TNT, they will ruin TNT just like what they ruined RPS. And like what DHL ruined Airborne Express. I do not understand why UPS was not allowed to acquire TNT, it would have made more sense; just like what an eventual merger between RPS and Airborne Express would have been better for the US Market. I hope some crazed European Muslim driver shoots Fred Smith the first time he visits the European operation.
     
  20. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    How did FedEx ruin RPS? Ground is the fastest growing and most profitable opco today.