Silicon Valley
Chapter 436 FedEx (Earth) Company
Ups United Parcel Service and FedEx once again expressed their intention to cooperate with Nicholas International E-commerce Company, and are willing to take 1% of the profit from the express fee to Nicholas International E-commerce Company.
However, to their disappointment, Henry, the big boss of Nicholas International E-Commerce Company, did not care about this profit, but made a request for company mergers and acquisitions. Namely merge with Nicholas Express.
With the rise of online shopping and the support of Henry's strong financial resources, Nicholas Express has quickly caught up with FedEx in recent years, especially in overseas acquisitions, which is almost crazy. Nicholas Express will acquire a relatively large-scale express company in almost every country, so as to quickly complete the construction and layout of overseas channels.
Today, Nicholas Express has a growing appetite and wants to swallow the express giant! Of course, with the financial resources of the Nicholas Express Company, it is naturally impossible to meet the conditions, but with Henry's support behind it, no company can buy it!
Today, with the rise of Nicholas Express, both UPS and FedEx FDX have been severely affected. The cake is only so big, and one more person will share it, and naturally everyone will 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 rushed into it like a wolf...
At present, the main business of UPS and FedEx is in the United States. Naturally, other countries also have express giants in local countries, such as British Express Logistics in the United Kingdom, Deutsche Post in Germany, Japan Express in Japan, etc. These express companies are not only large in scale It is not easy for UPS and FedEx to take their market away. Especially FedEx, it has no price and speed advantages in Western Europe, Canada, South America, Africa, and the Middle East. It is only equivalent to the ability of an ordinary express company. Only in Southeast Asia, FedEx can be regarded as the best. Express company, so its popularity in China is quite high.
At present, with the rise of online shopping, local private express delivery companies have ushered in an opportunity for development. They grew step by step and began to impact express delivery giants, such as China's Shunfeng Express. Since its establishment in 1993, the development speed has been very fast, and they have begun to challenge China Post. As for foreign express delivery giants, it is even more uncomfortable!
The logistics industry has begun to flourish, and newly established express delivery companies have blossomed all over the world, which has caused a huge impact on the original old-fashioned international express delivery giants. For UPS and FedEx, it can be described as internal and external problems, and the profit in recent years has begun to decline! Although there is no loss of money, but the money earned is less, and we have to pay attention and worry!
FedEx is the company that has been hit the hardest in the United States. Although it and UPS are among the top ten express delivery companies in the world, the gap between the two is still quite large. The difference can be seen from the amount of profit alone. The annual profit of UPS is more than 2.5 billion US dollars, while the annual profit of FedEx is only 1 billion US dollars. UPS 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, "The robbery is looking for soft persimmons!" Nicholas Express naturally started with FedEx first and robbed many of its users.
FedEx can feel a sense of crisis at all times, and major shareholders have become dissatisfied with the company's management. When they saw Nicholas Express growing step by step, they were very worried about the future of FedEx.
This time, after Henry proposed the merger plan, UPS outright rejected it, and there were huge differences 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 value. But Fred Smith, the founder of FedEx, disagreed. He knew very well that once the two companies merged, the company would no longer belong to him, but Henry Williams!
No one is willing to hand over the express empire built by themselves!
But investors are in trouble, they just want to make money. Nicholas Express has the support of Henry Williams, the richest man in the world, and has risen strongly and is unstoppable! FedEx has been established for 27 years, and it has long developed into a company on the top of the pyramid. The room for improvement is very small, but the probability of falling is very large. 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 merger this time, as an investor in FedEx, is naturally very willing.
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 10th, after many unsuccessful discussions with Fred Smith, the investor finally decided to kick him out of the company! Fred Smith only owns about 5.1% of the shares and is powerless to resist.
Fred Smith was out, causing a huge media sensation. Fred Smith's entrepreneurial history is full of legends. He is a leader in the American express delivery industry. He 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 largest express delivery companies, with outstanding capabilities and attracting attention from thousands of people!
But I didn't expect that such a legendary figure was kicked out of the company by the shareholders, which is really shocking.
The media were well-informed and quickly found out what was going on. The next day, the paper said: "Henry Williams wants to buy FedEx, Fred Smith is out!"
"The founder can't be an investor after all!"
"Fred Smith is following in the footsteps of Steve Jobs!"
After Fred Smith was kicked out of the company, he sold all the shares in his hand in a fit of anger, and Henry naturally bought them all.
Once Fred Smith was out, the M\u0026A plan went smoothly. Within a week, Nicholas Express completed the acquisition of FedEx, then applied for the delisting of FedEx, and then merged with Nicholas Express, with Henry holding 90% of the shares 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) Corporation.
(To be continued ~^~)
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