Shareholders approve creation of third largest trucking company

OVERLAND PARK, Kan., (Dec. 10, 2003) — Yellow Corp.’s acquisition of Roadway Corp. moved forward yesterday as shareholders of both trucking companies approved the cash-and-stock deal that had been valued at $966 million.

The transaction, which will likely close tomorrow, will result in creation of Yellow Roadway Corp., which would control more than 15 per cent of the U.S. LTL market as a result of the merger. The combined $6 billion Yellow and Roadway took in last year would make the joint company North America’s third-largest ground transportation company, behind UPS and FedEx Corp., each with annual revenue far exceeding $20 billion.

The new company and Yellow will merge some administrative operations but will continue to operate as separate entities. Yellow chairman Bill Zollars said he expects less than 200 jobs will be cut out of a combined workforce of 50,000.