Release Date: 10 January 2007
Release ID: 449
TNT today announced the completion of its acquisition of 100% of the shares of Expresso Mercúrio S.A. (Mercúrio), the market leader in the Brazilian domestic express market. The acquisition provides TNT with an ideal platform to further develop an integrated South American road express network. Parties do not disclose further details on the price of this cash funded transaction.
Mercúrio leads the Brazilian domestic express market with a market share of 15%. In 2006, revenues of Mercúrio are expected to amount to around EUR 190 million. Mercúrio has developed the largest owned network in South and Southeast Brazil connecting 3,300 cities and has been expanding its reach into the Northeast since 2004, fulfilling its ambition of nationwide coverage. Its leadership was established by offering a high quality product portfolio with, among others, day definite services and track and trace. Mercúrio has a broad, diverse and loyal customer base in the domestic express market. The company employs over 6,000 employees and has a well developed network with 101 depots and 2,044 vehicles.
Mr. Peter Bakker, Chief Executive Officer of TNT N.V. said: “After recent announcements for China (Hoau) and India (Speedage), Brazil is again a bold move into another rapidly growing emerging market. Combining Mercúrio’s domestic road network with TNT’s international air and road network capacity is an embodiment of TNT’s Focus on Networks strategy. With Mercúrio we acquire the leading domestic Express network in the third of the 4 BRIC countries in the space of little over 12 months.”
Mrs. Marie-Christine Lombard, Group Managing Director of TNT’s express division, said: “This transaction adds to TNT’s strategic objective to become number 1 in selected emerging markets. Mercúrio’s cross-border network provides us with an excellent opportunity to grow and expand even further throughout South-America. We are especially pleased with the trust the current management of Mercúrio have displayed by remaining with the company.”
Mr. Roberto Rodrigues, Country General Manager of TNT Express Brazil, adds: “Mercúrio’s customers will certainly benefit from this transaction. TNT’s excellent network in and into Europe and Asia allows us to improve service offerings to these customers, which often have built their businesses on the strong historical ties between South America and Europe.”
Customers of Mercúrio and TNT will benefit from this transaction on a number of aspects. TNT will be able to offer a full integrated network in the Brazilian express market with national coverage and connections to Chile, Argentina and Uruguay. Furthermore, as the Brazilian market is characterised by its fragmented nature, Mercúrio’s customers can benefit from the broad product range TNT offers. Also, linking Mercúrio’s domestic network up with the international network of TNT will provide the customers with a global reach for their shipments.
The Brazilian domestic express market is expected to show growth rates in the range of 10 to 15 percent in the coming years. The Brazilian economy is marked by high investments in the manufacturing sector such as automotive, FMCG and the pharmaceutical/chemical industry. Furthermore, the government is planning high investments in the infrastructure; two important factors for an express company.
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