European regulator to raise concerns on UPS-TNT Express merger
10 Oct 2012
The European antitrust regulator will serve United Parcel Service (UPS) a formal notice as early as next week outlining concerns on its proposed $6.85 billion acquisition of Dutch rival TNT Express, the Financial Times yesterday reported, citing people involved in the process.
The European Commission (EC) had in July started a Phase II investigation into the deal on concerns that the merged company would corner a large market share in Europe.
The EC, was close to finalising its investigation and will issue a "statement of objections" on the deal as early as next week, said the report.
In August, UPS, the world's largest package delivery and logistics company, said that it will extend its buyout offer period for TNT Express to 9 November in order to meet regulatory concerns.
In March, Atlanta-based UPS had struck a deal to buy its smaller rival TNT Express, after raising its bid to $6.85 billion (€5.2 billion). The potential acquisition would be UPS's largest in its 105-year history after it purchased Overnite Corp in 2005 for $1.2 billion.
Buying the Hoofddorp, Netherlands-based company, will give UPS a stronghold in Europe, China, Russia, Brazil and India, most of which have high growth potential. It would put UPS on par with Europe's market leader DHL- a unit of Germany's Deutsche Post AG.