EC to block TNT's $6.85-bn acquisition by UPS
14 Jan 2013
United Parcel Service Inc (UPS) today said it would abandon its €5.2-billion ($6.85 billion) takeover bid of its Dutch rival TNT Express as the European anti-trust regulator has indicated that it is inclined to reject the deal.
The Atlanta-based company said that the European Commission (EC) has informed it and TNT Express that it is working on a decision to block the proposed acquisition.
Scott Davis, UPS chairman and CEO said, "We are extremely disappointed with the EC's position. We proposed significant and tangible remedies designed to address the EC's concerns with the transaction. The combined company would have been transformative for the logistics industry, bringing meaningful benefits to consumers and customers around the world, while supporting growth in Europe in particular." (See: UPS offers concessions to complete TNT Express acquisition).
UPS will pay TNT a termination fee of €200 million and will withdraw the offer once the formal decision is taken, UPS said in a statement.
In March 2012, UPS, the world's largest package delivery and logistics company raised its bid to buy TNT Expressfor $6.85-billion, from $6.43 billion first offered in February 2012. (See: UPS to acquire European rival TNT Express for $6.85 billion)
The potential acquisition would have been UPS's largest in its 105-year history after it purchased Overnite Corp in 2005 for $1.2 billion.