FedEx Corp., Memphis, will add more than $700 million in defined benefit plan assets as a result of the acquisition of TNT Express NV, Hoofddorp, Netherlands, announced Tuesday.
FedEx said it “will continue to respect existing work councils, trade unions and employee rights and benefits (including pension rights)” at TNT Express, a news release said.
TNT Express had €650 million ($715 million) in defined benefit plan assets as of Dec. 31, according to its most recent annual report. FedEx reported $21.9 billion in DB plan assets as of May 31, 2014, in its most recent 10-K filing. The company also has $12.8 billion in defined contribution assets.
FedEx spokesman Jess Bunn said the €4.4 billion cash deal is not expected to close for about another year or so, so it’s “business as usual for now” regarding the two companies’ retirement plans and how they will be integrated has not been determined.