Memphis, TN-based FedEx Corporation (FDX Quick QuoteFDX - Free Report) took a giant leap in favor of its European operations by completing the acquisition of TNT Express for €4.4 billion. Ever since the announcement of the deal last April, updates on it have invited shareholders attention as it has been gaining regulatory approvals over an extended period of time. In this regard, the antitrust clearance from the U.S. Federal Trade Commission was gained last November.

As FedEx primarily aims to become a key player in Europe through this acquisition, the approval from the European Commission (EC) – the antitrust watchdog of the European Union – was of utmost importance. However, the approval didn’t come easy. The EC had launched a thorough investigation into whether competition in Europe would be stifled in the event of the deal materializing. Eventually, the clearance came in January this year after all the concerns were addressed. The receipt of this key approval removed a major hurdle toward the successful completion of the merger. Meanwhile, approvals from other countries followed suit with the Ministry of Commerce People’s Republic of China (MOFCOM) sanctioning the deal this April. Notably, the deal will help FedEx strengthen its position in the fast-growing e-commerce business.

The TNT Express deal marks a major victory for FedEx over rival United Parcel Service Inc. (UPS Quick QuoteUPS - Free Report) as the latter's attempt to acquire TNT Express had been thwarted by European regulators a few years back. With FedEx being successful in acquiring TNT Express, investors would now keenly await updates on the integration process of the merger.

Zacks Rank & Stocks to Consider

FedEx currently carries a Zacks Rank #2 (Buy). Investors interested in the broader transportation space may also consider SkyWest, Inc. (SKYW Quick QuoteSKYW - Free Report) and Air France-KLM SA (AFLYY Quick QuoteAFLYY - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy).

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