XPO Logistics' bid for Norbert Dentressangle is the latest in a predicted flurry of M&A transactions expected to take place during 2015, as the transport and logistics sector grows in confidence.
KPMG predicted earlier this month that M&A activity across the global transport sector was set to step-up a gear, with geographical expansion one of the key driving factors.
This was underlined by FedEx’s £3.2bn bid for TNT Express, which KPMG said is an example of a classic geographic play to strengthen the US firm’s European ground and air network.
In Q1 this year, global M&A transactions worth £6.7bn were completed, with further acquisitions valued at £6.7bn in the pipeline. KPMG predicts more than £40bn of M&A activity will take place during 2015.
KPMG’s head of global logistics Justin Zatouroff told The Hub: “The logistics industry is starting to feel more confident again and is starting to look forward after the recession and subsequent low growth period.”
John Manners-Bell, CEO at Transport Intelligence, said: “Our prediction that there would be a number of transformational deals in 2015 has proved right. The acquisition of Norbert Dentressangle by smaller US company XPO catapults it into the ‘Big League’ of global logistics providers.
"In much the same way as the FedEx-TNT deal, it is a sign of confidence in the European economy, especially the UK where Norbert Dentressangle is so strong.”
He added that the strength of the dollar no doubt helped the deal, but "we suspect it would have happened anyway".
"XPO has been behind a wave of acquisition activity in the US and there were fears it was running out of steam. However it has clearly turned its attention internationally in order to meet its ambitious growth targets," said Manners-Bell.