FedEx adds insult to injury for UPS

April 8, 2015

 In a world that promises imminent drone deliveries of everything from tacos to disaster relief supplies, shipping services are in high demand.

Keen to capture a larger slice of the European pie, Memphis-based package delivery giant FedEx yesterday announced plans to buy the Dutch firm TNT Express for $4.8 billion. European regulators blocked a $6.9 billion bid from United Parcel Service (UPS) for TNT in early 2013 citing antitrust concerns, so this week’s announcement adds insult to the injuries that UPS’s stock price has endured this year.

As this Reuters graphic shows, UPS hit an all-time high on Jan. 22, then dropped to the tune of nearly 10 percent the next week.  Since February, both UPS and FedEx have tracked with the ebbs and flows of the S&P 500, but while the index is down 8.3 percent for the year, January’s slide puts UPS at a nearly 13 percent loss. 

DHL enjoyed a 41 percent share of the European market in 2013, edging UPS’s 25 percent. FedEx owned just 10 percent of the market, but the addition of TNT’s 12 percent would give it a competitive 22 percent, and FedEx’s air fleet is seen as nicely complementing TNT’s strong European ground game.

FedExUPS040815-620

 

 

No comments so far

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/