TNT Express bought for $6.77 billion by UPS

UPS is giving a vote of confidence to Europe with its $6.77 billion purchase of Dutch rival TNT Express, by far the company's biggest deal ever.

After weeks of negotiations, the world's largest package delivery company on Monday locked in a deal for Europe's No. 2 express mail company. Although TNT has struggled during the European financial crisis, it's a valuable prize that allows UPS to better compete with Germany's DHL.

An analyst estimates UPS will have between one-quarter and one-third of the European package delivery market.

The deal also allows UPS to expand in growing markets such as Brazil, and comes as business is picking up in the U.S. Before this, UPS' biggest acquisition was Overnite Transportation in 2005. It paid $1.25 billion for the company that later became UPS Freight.