Fred Smith is the current CEO of FedEx, and it is also worth noting that he is also its founder. Time has finally come for this official to broker a good deal for his business. The official owns about 7.5% of FedEx’s outstanding shares in the company, and all eyes are on him to see the way he goes. He is obviously at the helm of the company’s leadership, and that shows his great capacity to influence it.
A close outlook
FedEx has been struggling in many ways, one of them being coping up with digital commerce. This has become the order of the day in the dynamic market, and the business seems rather slow to adapt. The result has been a significant plunge in its stocks. Reports indicate that they dropped by a margin of about 40%.
Smith has a decision to make, and one of his options may be the Berkshire Hathaway Inc (NYSE:BRK.A) belonging to Warren Buffett. The other option would be Walmart. However, it is one thing to wish for a deal and completely another to nail it. This brings to mind the question of what are the conditions for a possible deal.
The idea of considering Buffett for the deal shouldn’t strike anyone as a farfetched one! It is a possibility to consider looking at several things. First and foremost, This entrepreneur is usually inclined top going for those acquisitions that he understands more easily. FedEx can score in this particular regard because it is easy to understand business.
The second thing about Buffett is that he is always eager to settle for acquisitions he finds affordable. FedEx again scores along this particular line.
As a third point of the possibilities, Buffett has, in several instances, disclosed his interest to make a massive acquisition. Reports indicate that he has about $130 billion in cash lying somewhere ready for investment. The same report indicates that there are chances of growth.
This is one possibility for FedEx.The other way would probably be its acquisition by Walmart. The ease with which Walmart would integrate it is the major point.