Silicon Valley

v2 Chapter 436: Federal Express (Earth) Corporation

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 profits from express delivery costs to Nicholas International E-commerce Company.

However, they are disappointed that Henry, as the boss of Nicholas International E-commerce Company, does not care about this profit, but puts forward a request for company mergers and acquisitions. That is to 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 layout of overseas channel construction.

Today, Nicholas Express has a growing appetite and wants to swallow the courier giants! Of course, the financial resources of Nicholas Express cannot meet the conditions, but with Henry's backing behind it, no company can buy it!

Now, with the rise of Nicholas Express, United Parcel UPS and FedEx FDX have been seriously affected. The cake is only so big, if one more person is divided, naturally everyone will be divided into less!

Although it can be said that the cake can be made bigger, this big cake based on e-commerce was divided by Nicholas Express, and the traditional logistics business, Nicholas Express, went in like a tiger wolf...

At present, the main business of United Parcel and FedEx is in the United States. Other countries naturally also have express giants in local countries, such as British Express Logistics, Deutsche Post in Germany, Japan Express, etc. These express companies are not only scaled It’s not easy for UPS and FedEx to take away their market. Especially FedEx, it has no price and speed advantages in Western Europe, Canada, South America, Africa, and the Middle East. It is just equivalent to the ability of an ordinary express company. Only in Southeast Asia, FedEx is considered the best. Express delivery company, so its reputation in China is quite high.

At the moment, with the rise of online shopping, local private express companies have ushered in an opportunity for development. They have grown step by step and have begun to impact express delivery giants, such as China's Shunfeng Express. Since its establishment in 1993, it has developed very fast and has begun to challenge China Post. As for foreign express giants, it is even more uncomfortable!

The logistics industry is beginning to flourish, and newly established express companies are blooming all over the world, and this has had a huge impact on the original old international express giants. For United Parcel and FedEx, it can be described as internal and external troubles, and their profits have begun to decline in recent years! Although there is no loss, but the money earned is less, and I have to pay attention and worry!

FedEx is the most impacted company in the United States. Although it and United Parcel are both ranked among the top ten express delivery companies in the world, the gap in strength between the two is quite large. It can be seen from the profit alone that United Parcel’s annual profit is more than 2.5 billion U.S. dollars, while FedEx’s annual profit is only 1 billion U.S. dollars. UPS is huge, with a market value more than twice that of FedEx, and is more competitive than FedEx in terms of price and speed. Therefore, when the crisis comes, the weaker FedEx is naturally the first to be hit.

As the saying goes, "Look for soft persimmons for robbery!" Nicholas Express naturally started with FedEx and robbed a lot of its users.

There is always a sense of crisis within FedEx, and major shareholders have become dissatisfied with the company's management. When they saw Nicholas Express growing up step by step, they were very worried about the future of FedEx.

This time, after Henry proposed the merger plan, UPS directly rejected it, and there was a huge disagreement within FedEx. Investors suggested merging the company with Nicholas Express, because Henry offered a very attractive price and proposed a purchase price of $35 billion, which is $5 billion higher than the current market value of FedEx. 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 he has built by himself!

But the investors are in trouble, they just want to make money. Nicholas Express is backed by Henry Williams, the richest man in the world, and it has risen strongly and is unstoppable! FedEx has been established for 27 years and has long since developed into a company on the apex of the pyramid. The room for rising is very small, but the chance of falling is very high. At present, whether it is financial resources or channels, FedEx is not a rival of Nicholas Express, and its market share will only be eroded bit by bit.

Therefore, Henry's request for merger and acquisition this time is naturally very willing as an investor in FedEx.

The contradiction between the founder and the investor is getting worse, and it is not difficult to imagine what the final result will be.

On October 10th, the investor finally decided to kick him out of the company after many discussions with Fred Smith to no avail! Fred Smith only owns about 5.1% of the shares, so he can't resist.

Fred Smith was out and caused a huge sensation in the media. Fred Smith’s entrepreneurial history is full of legends. He is a leader in the American express delivery industry. He has repeatedly appeared on the cover of Time magazine 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 ~lightnovelpub.net~ that such a legend was kicked out of the company by shareholders, which is really shocking.

The media were well-informed and quickly found out the whole story. The next day, the newspaper said: "Henry Williams wants to buy FedEx, and Fred Smith is helplessly out!"

"The founder can't do the investor after all!"

"Fred Smith follows in the footsteps of Jobs!"

After Fred Smith was kicked out of the company, he sold all his shares in a fit of anger, and Henry naturally bought them all.

Once Fred Smith was out, the merger plan went smoothly. Within a week, Nicholas Express completed the acquisition of FedEx, then applied for FedEx to delist, and then merged with Nicholas Express. Henry holds 90% of the shares in the new company.

As for the name of the new company, it is still called FedEx, but there is an "Earth" in the brackets, namely: FedEx (Earth) Corporation.

(To be continued.)