American delivery giant United Parcel Service (UPS) has confirmed it will acquire TNT Express (TNT) in a deal worth €6.8 billion.

Netherlands-based TNT, which presently operates a European fleet of 50 aircraft connecting 65 destinations, will now be linked to a much larger global network.

UPS saw an all-cash offer of €9.50 per ordinary share accepted earlier.

The price represents a premium of 53.7 per cent on the TNT share price of €6.18 recorded on February 16th, the day before UPS announced its takeover plans.

It is expected the transaction will create a global leader in the logistics industry with more than €45 billion in annual revenues and an enhanced, integrated global network.

“The complementary strengths of both organisations will create a customer-focused global platform that will be a leader in transportation technology and customer service,” read a joint statement from the companies.

“The combination of the two businesses benefits from a strong cultural fit as both entities have strong management teams that focus on customer service, operational excellence and good corporate citizenship.”