UPS (United Parcel Service) has agreed to buy rival TNT (Thomas Nationwide Transport) in a 5.2 billion-euro ($6.8 billion) deal.

TNT has accepted an improved bid of 9.5 Euros a share, a 54% premium on its closing price of 6.18 Euros on 16 February, the day before the two firms announced they were in talks.

The takeover is being seen as a move by UPS to expand its business in Europe.

UPS has agreed to buy rival TNT in a $6.8 billion deal

UPS is the world’s largest package delivery company.

“The complementary strengths of both organizations will create a customer-focused global platform that will be a leader in transportation technology and customer service,” the companies said in a joint statement.

“The combination underlines UPS’s long-standing commitment to Europe by expanding its express capabilities in Europe.”