TNT today announced it had acquired 100% of Brazilian leading domestic courier Expresso Mercúrio aspart of its worldwide strategy to become the No.1 carrier in emerging markets.
Mercúrio employs over 6,000 people, has more than 100 depots and over 2,000 vehicles, and2006 revenues were expected to amount to EUR 190 million. How much TNT paid for Mercúrio was notdisclosed.
The Brazilian carrier, which has 15% of the domestic market, has developed the largest ownednetwork in south and south-east Brazil, connecting 3,300 cities, and has been expanding into thenorth-east of the country since 2004.
“This transaction adds to TNT’s strategic objective to become number 1 in selected emergingmarkets,” said Marie-Christine Lombard, group managing director, TNT Express.
“Mercúrio’s cross-border network provides us with an excellent opportunity to grow and expandeven further throughout South-America. We are especially pleased with the trust the currentmanagement of Mercúrio have displayed by remaining with the company.”
TNT said it would now be able to offer a full integrated network in the Brazilian expressmarket with national coverage and connections to Chile, Argentina and Uruguay. The Mercúrio dealfollows two other major purchases by TNT in emerging markets last year, namely Hoau in China andSpeedage in India.
The acquisition provides TNT with the platform to develop further its South American roadexpress network.
The Brazilian domestic express market is expected to show growth rates in the range of 10 to15 percent in the coming years. The economy is marked by high investments in the manufacturingsector such as automotive, FMCG and the pharmaceutical/chemical industry.
Furthermore, the government is planning high investments in the infrastructure; two importantfactors for an express company, TNT said.
