Transportation Rivals Take Diverse Roads to Expand

Mark Szakonyi, Associate Editor | Jun 11, 2012 4:00AM GMT
The Journal of Commerce Magazine - News Story

UPS, FedEx map different strategies for expanding in Europe and Brazil

While UPS made a splash with its move to buy TNT Express earlier this year, FedEx appears to be forging a more cautious approach in countering the European and Brazilian expansion of its main rival.

The planned FedEx acquisition of two European transportation companies and, most recently, a Brazilian logistics and parcel delivery company takes a “more measured international growth strategy that looks to smaller, bolt-on operations,” wrote transportation analyst David Ross of Stifel Nicolaus.

This approach appears to be in sharp contrast to the planned UPS acquisition of TNT Express, Europe’s second-largest package delivery company, for $6.8 billion in cash.

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Contact Mark Szakonyi at mszakonyi@joc.com. Follow him on Twitter @Szakonyi_JOC