Express Freight and Parcel Group Merger Wins Authority Approval

BRAZIL – EUROPE – Brazilian antitrust authority Conselho Administrativo de Defesa Econômica (Cade) has rejected the third party appeal of its unconditional approval of the proposed €4.4 billion acquisition of the Dutch parcel carrier TNT Express by express freight group and US rival, FedEx Corporation. As predicted, UPS had been the previously unnamed third party appellant, calling for a more in-depth analysis of the effects the merger would have on the small packages market.

On January 8, 2016, FedEx and TNT Express announced that the Acceptance Period for the Offer had been extended until two weeks following the acceptance or waiver of the Offer Condition with respect to Competition Clearances.

FedEx and TNT Express have thus obtained unconditional competition approval in the EU, Brazil, and the US and both parties say they are continuing to work constructively with regulatory authorities to obtain clearance of the transaction in the remaining relevant jurisdictions, including China. FedEx and TNT Express insist the negotiations are making timely progress and continue to anticipate that the Offer will close in the first half of calendar year 2016.