UPS to buy Dutch rival TNT Express

United Parcel Service has reached a deal with TNT Express NV to buy the Dutch rival for 5.6 billion euros ($6.77 billion), creating a dominant package-shipping operation in Europe, the companies announced in a joint statement Monday.

"The transaction will recreate a global leader in the logistics industry with more than 45 billion euros in annual revenues and an enhanced, intergrated global network," they said in the statement.

The all-cash offer amounts to 9.5 euros per ordinary share which represents a premium of 53.7 percent to the share price before the announcement of discussions between the two groups.

"The Executive and Supervisory Boards of TNT Express unanimously intend to support and recommend the offer," the statement said.

Last month TNT Express said it had rejected a 4.9 billion euro ($6.4 billion) unsolicited offer by the US-based parcel and logistics giant, but remained in discussions.

Headquartered in Atlanta, Georgia, UPS is the world's largest package-shipping group with annual revenues last year of ê53.1 billion and 400,000 employees.

TNT Express operates in more than 200 countries and employs 83,000 people. AFP

Follow Emirates 24|7 on Google News.