TNT Express to sell airline operations if EU approves UPS merger
17 Nov 2012
TNT Express NV (TNT) yesterday said that it would conditionally sell its airline operations to ASL Aviation Group, in order to ease regulatory concerns over its proposed merger with its larger rival United Parcel Service (UPS).
Hoofddorp, Netherlands-based TNT, Europe's second-largest package-delivery company, would sell its TNT Airways and Pan Air Lineas Areas on condition that the sale will become effective immediately prior to completion of its proposed merger with UPS.
TNT declined to provide financial terms of the deal but said that it had to sell the airlines before the closing of the merger in order to comply with European Union (EU) ownership rules. Under the EU rules, a non-European company cannot own majority stake in a European carrier.
TNT said it does not expect the sale to impact its activities at its hub in Liège for at least one year following completion of the merger. Further, and Aviation Group intends to maintain the TNT Airways headquarters in Liège.
In March, Atlanta, Georgia-based UPS, the world's largest package delivery and logistics company, struck a deal to buy TNT, for $6.85 billion (€5.2 billion). (See: UPS to acquire European rival TNT Express for $6.85 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.
