TNT Express announce divestment from China and Brazil following vetoed UPS merger

TNT Express unveiled its updated strategy and profit improvement plan on 25th March. The failed merger with UPS following an EC veto saw falls in the Dutch courier company’s share price and companies had been awaiting its renewed strategy as a standalone company.

Image c/o TNT Express

 

The new plan entails divestment from China and Brazil and a focus on the company’s European network. In addition, 4,000 jobs will be lost by 2015 in a bid to create a leaner management structure, saving €220 million in operational costs.

While TNT have a very strong European network and hold 17% of the internal European Express Market, Martin Bakker of ABN Amro has stated that, “in China they are just a drop in the ocean, they lack the size and position to defend themselves…It’s better for them to say goodbye to China.”

TNT state that “the sales process for domestic China is well underway and the outcome should be known imminently”. Preparations for the sale of Brazil Domestic are also under way.

Interim CEO Bernard Bot commented: “our business faces difficult market conditions and strategic challenges but we have a unique competitive proposition: an unrivalled European network, worldwide connections, an integrated range of service and recognised dedication to our customers.”

Source: TNT