FedEx (FDX) Does Homework on TNT Express, Gets Rewarded

FedEx (NYSE: FDX) is positive Tuesday following an announcement that it would move to acquire TNT Express in a deal valued at about $4.8 billion.

While TNT Express' earnings have slid since European regulators blocked a deal for UPS to acquire the company three years ago, FedEx is paying a multiple that's nearly twice as expensive as UPS was offering: 24 times profit, according to the press release.

FedEx decided to wait an gauge TNT Express' financial health over the next few years following the scrapped UPS bid, according to Bloomberg, citing sources familiar with the information.

It's the best offer TNT Express is likely to get; shares traded up to €7.69 versus the FedEx offer of €8 per share, hinting that investors are expecting a competing bid to come through.

The deal will still need to pass regulatory muster.

Shares of FedEx are up nearly 3 percent.

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