UPS to defend TNT takeover on 12 November

Monday, 12 November 2012 00:00 - - {{hitsCtrl.values.hits}}

Reuters: United Parcel Service will seek to convince sceptical EU regulators about its proposed 5.2 billion euros ($ 6.7 billion) takeover of TNT Express at a closed-door hearing on 12 November.

The European Commission last month warned the world’s No. 1 package delivery firm about the combined company’s high market share and would be seeking concessions before it would approve the deal.

Analysts said the merged entity would control a quarter of the market, ahead of Deutsche Post unit DHL’s 19 per cent. The EU authority detailed potential problems in a 360-page confidential statement of objections or charge sheet, focusing on the intra-European express delivery market, according to sources.

UPS is likely to offer concessions after the hearing towards the end of November. The TNT deal is the biggest in the US-based company’s 105-year history. FedEx also competes with UPS.