NEW YORK (TheStreet) -- FedEx (FDX) has requested that the European Union's competition regulator approve the package delivery service company's $4.9 billion offer to acquire its Dutch competitor TNT Express (TNTEY), Reuters reports.
Shares of FedEx are lower by 1.15% to $171.74 in pre-market trading on Monday morning.
FedEx sent its request for approval on Friday and it should take about 25 business days for the EU to finish its preliminary review.
In 2013 TNT Express agreed to a takeover offer from UPS, but it was rejected by the European Commission. Analysts are expecting the deal between FedEx and TNT Express to cause fewer issued than the UPS deal, as it would create strong competition in Europe, Reuters noted.
Separately, TheStreet Ratings team rates FEDEX CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate FEDEX CORP (FDX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income."