TNT has acquired Brazil's largest package delivery company, Expresso Mercurio, as it turns to this rapidly emerging market and puts its expansion plans on hold in China and India.

TNT is expected to use this acquisition as a springboard to expand into South America. The transaction price has not been disclosed.

A report by the Dutch news agency APN said Mercurio now commands 15 per cent of the Brazilian market, being mainly active in the south and southeast with a presence in 3,300 towns and ambitions to achieve national coverage.

APN noted that in 12 months, TNT has made three large acquisitions in rapidly growing markets, after purchasing China's biggest freight and package delivery firm, Hoau, as well as India's Speedage.

The company is now believed to be setting its sights on establishing a foothold in South America, South Africa and possibly Russia. This means that for now further acquisitions in China and India will be on the backburner to allow TNT time to shape up the companies it has acquired there since 2004.

TNT forecasts that Brazil's domestic express market will grow 10 to 15 per cent in the coming years. TNT sales for the whole of 2006 are expected to be in the range of EUR190 million (US$245.05 million).