UPS Shareholders Should Applaud The Acquisition Of TNT

Discussion in 'The Latest UPS Headlines' started by cheryl, Feb 26, 2012.

  1. cheryl

    cheryl I started this. Staff Member

    UPS Shareholders Should Applaud The Acquisition Of TNT - Seeking Alpha

    UPS shareholders should applaud the deal if it is able to buy TNT at 9 euros. The valuation is about 0.7 times annual revenues vs. a multiple of 1.4 times for UPS. Furthermore, annual synergies in the range of $400 million per year could be expected.

    From a strategic point of view, UPS has a one-time chance to expand its European market share from 7.7% to 17.3%, making it a close competitor of German DHL which has a market share of 17.6%

    It would create a duopoly in Europe, as Fedex has a mere 3.3% market share in Europe.