UPS buys Overnite for $1.25bn.

[Dav8tor]

United Parcel Service on Monday agreed to acquire Overnite Corporation, a US trucking company, for $1.25bn in cash, further diversifying the group beyond its traditional parcel delivery business.

The deal fills a strategic gap for UPS, which had been largely absent from the domestic ground transportation sector.

 

[BoilerUP]

"UPS is a trucking company that owns an airline, while FedEx is an airline that is trying to run a trucking company."

 

[CA1900]

The deal fills a strategic gap for UPS, which had been largely absent from the domestic ground transportation sector.

?? Then what are all those big brown trucks?

 

[ironwedge]

Both UPS and FedEx are networked distribution companies - and both have huge exposure to energy (fuel) costs. To expand the network is a gamble that they think market share expansion is doable. When the next fuel spike comes along - the company with the biggest market share will stand a better chance of passing fuel costs along to the customer, and thus a better chance of maintaining profitability.

 

[Dav8tor]

$1.25 bn in CASH.

 

[Inconceivable]

..yet the pilot contract is at what, 3 years now?

 

[walden]

Inconceivable,
This word that you keep using...I do not think it means what you think it means
Vizzini is one of the best characters in the history of movies. Great avatar!