A strategic perspective of the TNT Express acquisition by FedEx

This report presents the merger between FedEx and TNT in detail, which constitutes one of the largest mergers in the courier delivery service industry. In the first section, the sector will be described, followed by an overview of both companies involved. After that, a thorough analysis of the deal will be provided, where the perspectives and motivations of both companies involved are examined. Finally, we will present relevant theories and discuss further by applying them to the specific characteristics of the FedEx TNT merger.

The international courier delivery service industry uses advanced logistics to carry out shipments through a sophisticated network from anywhere in the world and in a very short period of time. The industry is highly concentrated at the international level as, because of its business modus operandi, scalability is a necessary condition to profitability (European Commission, 2013). By 2015, the year of the merger, there were four main players in the global express industry.