Sunday, February 26, 2012

What non-US companies are key players in the industry?

In the article titled "TNT Shares Soar After UPS Makes Takeover Bid," it talks about how the shares jumped up after UPS offered 9 euros per share. They jumped above 10 euros a share now. Interesting enough, UPS can go from anywhere between 9-14 billion euros to takeover TNT express delivery.

TNT express is a dominant express delivery company in Europe and for them to be bought out by UPS would be huge for UPS. They would almost essentially have the majority of the market in Europe. This would be terrible for international business for Fedex. They would be locked out of Europe. Another reason why this would be so big is because TNT Express was considered one of the big 4 companies in package delivery. For UPS to buy out such a close competitor would make them a very powerful international company in the transportation industry.


http://online.wsj.com/article/SB10001424052970203358704577235251316965674.html?mod=WSJ_Transportation_leftHeadlines

2 comments:

  1. So UPS theoretically could have a semi-monopoly over the delivery industry in Europe? Monopolies are never good, in my opinion, and I doubt Europe would allow this to happen.

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  2. Michael, it wouldn't necessarily be a "semi-monopoly," being that Europe is served by companies such as DHL, Royal Mail, Deutsche Post, and FedEx. I think the acquisition is a great deal for UPS and I'm sure Europe will go for it. Read my article ahead.

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