FedEx’s $4.4 Billion Acquisition of TNT Has Been a Dud - Bloomberg
The Dutch company was supposed to fuel growth in Europe, but it’s been hard to integrate.
FedEx Corp.’s European road trip has turned into a yearslong headache.
The parcel-delivery company, historically a laggard in Europe relative to rival United Parcel Service Inc., bet big on the region in 2016 with the $4.4 billion acquisition of Netherlands-based TNT Express NV. Three years later, FedEx is still trying to integrate TNT into its operations. Two veteran executives leading that process have been replaced, and sluggish growth abroad is weighing on FedEx’s results. On March 19, the company cut its fiscal 2019 earnings guidance for the second time in only three months and said it may need to take more drastic cost-cutting actions to mitigate the impact of weak international sales.
The Dutch company was supposed to fuel growth in Europe, but it’s been hard to integrate.
FedEx Corp.’s European road trip has turned into a yearslong headache.
The parcel-delivery company, historically a laggard in Europe relative to rival United Parcel Service Inc., bet big on the region in 2016 with the $4.4 billion acquisition of Netherlands-based TNT Express NV. Three years later, FedEx is still trying to integrate TNT into its operations. Two veteran executives leading that process have been replaced, and sluggish growth abroad is weighing on FedEx’s results. On March 19, the company cut its fiscal 2019 earnings guidance for the second time in only three months and said it may need to take more drastic cost-cutting actions to mitigate the impact of weak international sales.
