This morning, FedEx (NYSE:FDX) announced a $4.8 billion all-cash offer to buy the Dutch delivery and logistics firm TNT Express (OTCPK:TNTEY). The offer represents a 33% premium to TNT Express' Thursday closing price on the Amsterdam Stock Exchange and also comes with the support of TNT Express' largest shareholder PostNL N.V., which holds a 14.7% stake in the Dutch carrier. Over three years ago, UPS (NYSE:UPS) announced its intention to purchase TNT Express in a $6.8 billion deal that was ultimately blocked by the European Commission. UPS has a rather larger European business than FedEx does and FedEx stated in its conference call that it is very confident that it will achieve regulatory approval. The firm has committed to a number of terms that will it keep the combined firm's operations in the Netherlands including honoring existing employment terms and making the regional headquarters of the merged operations' business in Amsterdam/Hoofddorp. Additionally, FedEx will sell off TNT Express' airline in order to stay compliant with European regulations. The deal has been supported by a substantially stronger dollar/weaker euro that has given FedEx the opportunity to purchase a quality business at an attractive price in a somewhat overvalued market. While there are risks to this deal, as TNT Express' integration into FedEx's business gives the opportunity for substantial financial and operational efficiencies that could provide meaningful earnings accretion in the coming years. Read more