United Parcel Service is expanding its global reach by agreeing to acquire rival delivery service company TNT Express in a $6.8 billion deal.

Atlanta-based UPS (UPS, Fortune 500) will pay about $12.50 in cash per share for the Dutch company, an increase of more than 50% since negotiations were first announced on Feb. 16, the companies said Monday.

UPS said the merger will expand its presence not only in Europe, but in Asia and Latin America. The company said that about 26% of its revenue currently come from outside the United States, and it expects that figure to grow to 36% following the merger.

The companies said that the executive and supervisory boards of TNT (TNTEY) support the agreement, which will result in a delivery company with $60 billion in annual revenue.

UPS and TNT stock prices each jumped about 2.5% in morning trading.

The stock price for its competitor FedEx (FDX, Fortune 500) edged up.

Source :money.cnn.com