Courier delivery services company FedEx has revealed its plans to acquire Hoofddorp headquartered European courier delivery major TNT Express for about $4.8 billion. According to reports, the new deal will allow Memphis-headquartered FedEx to stand strongly against rivals United Parcel Service (UPS) and Deutsche Post in Europe.

The reports stated that if FedEx succeeds in winning regulatory approval for its all-cash bid, the courier service company will be moved to second spot among package delivery services in Europe with about 17% market share. Logistics company UPS in Europe has about 16% market share, while Deutsche Post's DHL is at the top with about 19% market share.

Currently, in Europe, TNT has 12% of the market share, while FedEx has 5% of the market in Europe. The new deal will allow FedEx to grab the second spot and gain an established door-to-door network in the region. The deal will be beneficial for FedEx as the company lags behind in the ground-delivery business.

The new deal was announced by the company in a recent statement. According to the reports, the deal will be completed during the first half of 2016. The reports stated that FedEx has agreed to pay TNT about $200 million in the form of a breakup fee.

As per FedEx and TNT, the European regional headquarters of the combined companies would be in Amsterdam/Hoofddorp. In a statement, Frederick W. Smith, chairman and CEO of FedEx, said that the new deal will add significant value for FedEx shareholders and consumers across the globe.

Smith further said, "This transaction allows us to quickly broaden our portfolio of international transportation solutions to take advantage of market trends - especially the continuing growth of global e-commerce - and positions FedEx for greater long-term profitable growth."