Lock, stock & parcel

It seems to be the season of M&As. The US-based FedEx Corp is buying out Dutch rival logistics company TNT Express in order to expand its reach in the European business parcel market. FedEx is paying €8 in cash per share, a premium of 33% to TNT’s last traded share price of €6, thus valuing it at €4.4 billion ($4.8 billion). For a struggling TNT, the buyout couldn’t have come at a more opportune time but for FedEx, a strong dollar would mean TNT’s earnings in euros will keep denting its bottomline.