Chapter 436: FedEx (Earth) Corporation
UPS United Parcel Service and FedEx once again expressed their intention to cooperate with Nicholas International E-Commerce, and were willing to take 1% of the profit from the courier fee to Nicholas International E-Commerce.
However, to their disappointment, Henry, as the big boss of Nicholas International E-commerce Company, did not care about this profit, but put forward a request for the company's merger and acquisition. i.e. merger with Nicholas Express.
With the rise of online shopping, coupled with the support of Henry's strong financial resources, the development speed of Nicholas Express in recent years has quickly caught up with FedEx, especially in overseas acquisition activities, which is almost crazy. Nicholas Express will acquire a relatively large express company in almost every country, so as to quickly complete the construction and layout of overseas channels.
Nowadays, the appetite of Nicholas Express Company is getting bigger and bigger, and it wants to swallow up the express giant! Of course, with the financial resources of Nicholas Express Company, it is naturally impossible to meet the conditions, but with Henry's support behind it, what company can't buy it!
Now, with the rise of Nicholas Express, UPS and FedEx FDX have been very badly affected. The cake is only so big, and if there is one more person, everyone will naturally share less!
Although it is said that the cake can be made bigger, this big cake based on e-commerce has been divided by Nicholas Express Company, and the traditional logistics business, Nicholas Express Company has pounced on it like a tiger wolf......
At present, the main business of United Parcel and FedEx is in the United States, and other countries naturally have local express giants, such as British Express Logistics in the United Kingdom, Deutsche Post in Germany, Nippon Express in Japan, etc., these express companies are not only large-scale, but also have local advantages, and it is not easy for United Parcels and FedEx to snatch their market. In particular, FedEx, it has no price and speed advantages in Western Europe, Canada, South America, Africa, and Middle East countries, but it is equivalent to the ability of an ordinary express company, only in Southeast Asia, FedEx is the best express company, so its popularity in China is quite high.
At present, with the rise of online shopping, local private express companies have ushered in an opportunity for development. They have developed and grown step by step, and began to impact express giants, such as China's Shunfeng Express, which has developed very fast since its creation in 1993, and began to challenge China Post, as for foreign express giants, it is even more uncomfortable!
The logistics industry began to flourish, and newly established express companies blossomed all over the world, which had a huge impact on the old international express giants. For United Parcels and FedEx, it can be described as internal and external troubles, and the profits in recent years have begun to decline! Although they have not lost money, they have made less money, and they have to pay attention and worry!
FedEx is the most affected company in the United States, although it and United Parcel are among the world's top ten express delivery, but the gap between the two is still quite large. Just looking at the amount of profit, it can be seen that United Parcel has an annual profit of more than $2.5 billion, while FedEx has an annual profit of only $1 billion. United Parcel is huge, with a market capitalization more than twice that of FedEx, and is more competitive than FedEx in terms of price and speed. Therefore, when the crisis comes, the first to be hit is naturally the weaker FedEx.
As the saying goes, "robbery is to find soft persimmon pinch!" Nicholas Express naturally started with FedEx and robbed a lot of its users.
A sense of crisis is felt within FedEx at all times, and major shareholders have become dissatisfied with the company's management. When they saw the growth of Nicholas Express, they were very worried about the future of FedEx.
This time, after Henry proposed the merger plan, United Parcel directly rejected it, and there was a huge disagreement within FedEx. Investors suggested merging the company with Nicholas Express because Henry offered an attractive price of $35 billion, which is $5 billion more than FedEx's current market capitalization. But Fred Smith, the founder of FedEx, disagreed, knowing in his heart that once the two companies merged, the company would no longer belong to him, but to Henry Williams!
No one wants to give up the express empire they have built by themselves!
But the investors are in trouble, they are just trying to make money. With the support of Henry Williams, the richest man in the world, the Nicholas Express Company has risen strongly and is unstoppable! FedEx has been established for 27 years and has long developed into a company at the top of the pyramid, with very little room for growth, but a great chance of falling. At present, whether it is financial resources or channels, FedEx is not the opponent of Nicholas Express, and its market share will only be eroded little by little.
Therefore, Henry's request for mergers and acquisitions this time is naturally very willing as an investor in FedEx.
The contradiction between the founder and the investor is becoming more and more intense, and it is not difficult to imagine what the final result will be.
On October 10, after several fruitless negotiations with Fred Smith, the investor finally decided to kick him out of the company! Fred Smith only owned about 5.1% of the shares, and was powerless to resist.
Fred Smith is out, causing a huge media sensation. Fred Smith's entrepreneurial history is full of legends, he is a leading figure in the American delivery industry, has appeared on the cover of Time magazine many times, and is one of the greatest entrepreneurs in American history.
In just 27 years, he has developed an obscure small company into one of the world's express delivery giants, with outstanding capabilities and attracting the attention of thousands of people!
But I didn't expect that such a legendary figure was kicked out of the company by shareholders, which is really shocking.
The media were well-informed and quickly found out what was going on. The next day, the newspaper said: "Henry Williams wants to buy FedEx, Fred Smith has no choice but to get out!"
"After all, the founder can't be an investor!"
"Fred Smith follows in Jobs' footsteps!"
And after Fred Smith was kicked out of the company, in a fit of anger, he sold all the shares in his hand, and Henry naturally bought them all.
As soon as Fred Smith was out, the merger plan went smoothly. Within a week, Nicholas Express completed the acquisition of FedEx, then applied for FedEx delisting, and then merged with Nicholas Express, with Henry holding 90% of the new company.
As for the name of the new company, it is still called FedEx, but a "Earth" is added in parentheses, namely: FedEx (Earth) Company.
(To be continued.) )