UPS has reached an agreement with FedEx to combine shipping and freight.
The combined company, which will deliver approximately 6.5 million packages annually, has been valued at $3.1 billion.
The transaction was announced Wednesday by the companies.
The deal was announced as the nation’s largest-ever merger.
The news comes as FedEx is looking to increase its footprint in the U.S. with the addition of the two companies’ freight units.
FedEx announced it will be adding warehouses and other operations to its existing fleet in the fall of 2020.
UPS is the largest U.A.E. logistics provider and the second-largest in the world.
The merged company will have about 2.1 million employees.
FedEx said the deal includes two companies with the combined fleet of more than 3.1 millions vehicles.
It also includes two more businesses that will have their freight operations integrated in the merger: U.K. shipping giant UPS (UPS) and German shipping giant FedEx (DFS).
UPS is an American company with headquarters in Atlanta, and FedEx is headquartered in Washington, D.C.