Reuters

(Reuters)

FedEx Making 'Timely Progress' on TNT Deal

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FedEx Corp. and TNT Express NV on Friday said they are making "timely progress" on their $4.8 billion deal, though the companies said it could take up to a year to gain regulatory approval.

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FedEx agreed in April to buy Dutch package-delivery company TNT, making an end run around rival United Parcel Service Inc. and positioning itself to capitalize on the growth of e-commerce in Europe.

FedEx already has a sizable air-express delivery operation in Europe, but it lags behind in the ground-delivery business. Acquiring TNT would give it an established door-to-door road network in Europe that connects more than 40 countries, saving the U.S. company the time and money required to build one from scratch.

But the all-cash FedEx deal is subject to approval by European Union regulators. In January 2013, EU regulators quashed an effort by UPS to acquire TNT for about $7 billion, unraveling an agreement that was about a year in the making.

FedEx on Friday said it plans to submit its offer to Netherlands regulators for approval by June 30, the deadline under Dutch law.

The deal must also receive antitrust clearance in China, Brazil and the U.S., the companies said, adding that they are confident regulators will green-light the deal.