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UPS is set to acquire TNT Express NV in a deal that will create a €45bn (£37.4bn) global logistics firm.

The deal values the Dutch firm at approximately €5.16bn, following its increased offer of €9.50 per ordinary share.

UPS says that in acquiring TNT it will fulfill its long-standing aim to expand its European operations. According to the  Motor Transport Top 100 the combined business will generate a UK turnover of approximately£1.3bn - placing it level with Wincanton as the second largest logistics operator by turnover in the UK.

Following the transaction, around 36% of the combined group's revenues will be generated outside the US, compared to the 26% UPS derives today.

Marie-Christine Lombard, TNT Express CEO, says: “This combination will significantly enhance the capabilities of two strong companies. I am convinced that together we will be the supplier and employer of choice in the express delivery industry.”

UPS says the takeover will offer employees from both companies more potential for growth and development, with the selection and appointment of staff based upon the “best person for the job” principle. In the case of any potential redundancies, UPS will apply the “principle of fairness” to decisions.

The TNT Express board will now take the recommended offer to shareholders, with UPS intending to submit a request for approval of its offer within eight weeks.