FedEx Shoots Higher On TNT Express Acquisition

Shares of FedEx Corporation FDX gained more than 5 percent in the pre-market session following the company's announcement that it agreed to acquire Netherlands-based TNT Express NV TNTEY for nearly $4.8 billion in cash, roughly 10 percent of FedEx's market capitalization of $47 billion.

The move comes less than two years after European regulators denied a bid by United Parcel Service, Inc. UPS to acquire TNT. The $4.8 billion bid represents a 33 percent premium on TNT shares.

In a press release, FedEx Chairman and CEO Frederick W. Smith said, "This transaction allows us to quickly broaden our portfolio of international transportation solutions to take advantage of market trends – especially the continuing growth of global e-commerce."

In addition to a broader global footprint, FedEx pointed to additional operational efficiencies that will grow value for shareholders. The company said it plans to utilize available cash with new and existing debt relationships to finance the deal.

FedEx recently traded at $175.26 in the premarket, up from a close Monday at $166.67.