FedEx Corp. (NYSE: FDX) announced this morning that it has signed an agreement to acquire French express transportation company TATEX. The acquisition is subject to regulatory approvals and no details were given on the terms of the acquisition.
FedEx has noted before that it plans to grow organically and to make small acquisitions, such as this one, to complement that internal growth. United Parcel Service Inc. (NYSE: UPS) took a different route to growth, acquiring Dutch firm TNT Express NV for $6.8 billion.
There is virtually no chance that FedEx can make enough acquisitions and integrate the companies acquired fast enough to challenge UPS or market leader DHL in Europe. Of course UPS has its own problems digesting the acquisition of TNT Express.
And both FedEx and UPS were probably counting on a bump in US business following the closure of thousands of post offices. Now that the USPS has come up with a plan to cut services without closing any of the offices, the two giant private carriers are probably re-calibrating 2012 forecasts.
Neither FedEx nor UPS shares are active in pre-market trading this morning.
Paul Ausick
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