Yellow-Roadway deal approved by shareholders
Dec 11, 2003 12:00 PM
Shareholders of Yellow and Roadway approved the companies’ $1.05 billion merger. Roadway shareholders will receive 1.752 shares of Yellow for each share of Roadway they own. Yellow chairman Bill Zollars has said the merged company will save money through leveraged purchasing of essentials such as fuel and equipment and the elimination of some redundant back office staff. He said the first-year savings from the acquisition probably will be about $125 million. "We're not changing operations or anything that deals with the customers. Each company will continue to operate separately," Zollars said. The merged company will control more than 15 percent of the LTL market with a combined workforce of 50,000. In terms of revenue, the $6 billion combined company would rank third behind UPS and FedEx each with annual revenues over $20 billion.
