So now a private equity firm, CITIC, has acquired TNT's Chinese business entity, the 1,600-depot Hoau, for somewhere around $90M. The good folks over at ING are suggesting that this is the first move in returning TNT to a pure play European concern. If so, they would need to offload their Brazil, Australia, New Zealand, Taiwan and other southeast Asian businesses as well.
This scenario brings a few thoughts to mind. First, did CITIC acquire Hoau with the intent to re-sell it to one of the many delivery companies that might have an interest? It would seem an unlikely business for a private equity company to actively manage. Secondly, I wonder how much interest FDX will have in any or all of the potential businesses (or UPS if eligible for that matter). Thirdly, it just adds to the feeling that if UPS had simply waited it out, we could have picked up the pieces of TNT we would have liked at very reasonable prices. We already had a strong presence in Europe and it seems growth there might be muted for some time anyway. Our doomed from the start dance to pick up all of TNT in a tough regulatory environment may have been an overreach and unusual for a conservative company like UPS. Thoughts?