Shipping giant UPS (NYSE:UPS) on Monday announced it would buy Europe carrier TNT Express for $6.8 billion, making UPS the world’s largest shipping company.
UPS shares were up early Monday on news of the deal, which will automatically give UPS better positioning in Dutch TNT Express’ home of Europe, as well as Asia and Latin America. UPS, which did about $53 billion in sales last year, is expected to produce more than $60 billion per year after the acquisition.
UPS will pay 9.5 euros per share for the Dutch company, a nearly 54% premium, pending the approval of European antitrust regulators.
UPS shares gained more than 2.5% early Monday, extending the company’s year-to-date gains to around 10%. UPS’ current dividend yield is around 2.8%.
Rival FedEx (NYSE:FDX) also was up slightly, about 0.5% a couple hours into trading.
– Kyle Woodley, InvestorPlace Assistant Editor