UPS withdraws $6.85-bn offer for TNT Express as EC refuses approval
31 Jan 2013
United Parcel Service, yesterday announced the withdrawal of its offer for its proposed $6.85-billion acquisition of Dutch rival TNT Express, as it failed to secure EU regulatory approval for a merger.
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.
In mid-January, Atlanta-based UPS said that the European Commission (EC) had informed it and TNT Express that it is working on a decision to block the proposed acquisition. (See: EC to block TNT's $6.85-bn acquisition by UPS).
The European Commission has now issued a formal decision prohibiting the proposed acquisition of TNT Express.
"As a result of the prohibition by the EC, the offer condition relating to EU Competition Clearance will not be fulfilled and the acquisition of TNT Express by UPS will not be completed," UPS said in a statement.
"Given this outcome, UPS and TNT Express entered a separate agreement to terminate the merger protocol," it aaded.