UPS offers concessions to complete TNT Express acquisition
01 Dec 2012
United Parcel Service (UPS) yesterday said it has offered concessions to the European regulator for approving its proposed acquisition of Dutch rival TNT Express.
UPS said that it has offered to divest certain business units and grant access to some of its airline network to rivals. But the Atlanta, Georgia-based company did not spell out which businesses it would sell.
''The proposed remedies comprise the sale of business activities and assets in combination with granting access to air capabilities, UPS said in a release.
UPS said it is currently negotiating the remedies with the European Commission (EC) and that it would offer no further details at this stage, since the offered remedies may be subject to change.
''The proposed remedies aim to address the EC's concerns regarding the competitive effects of the intended merger on the international express small package market in Europe. UPS and TNT Express continue to be fully committed to the merger and are working closely with the EC in order to gain competition clearance allowing completion of the transaction in early 2013. As part of the approval process, the EC will market-test the remedies on a confidential basis, the statement added.
In March, 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)
