New Zealand Authorities Accept Express Package Freight Deal

NEW ZEALAND – The New Zealand Commerce Commission has granted its approval for the acquisition of TNT Express by the FedEx Corporation, saying that enough competition will remain in the small package delivery market. With other competition authorities considering their options, European regulators are apparently considering requesting concessions to ensure a fairer freight market, confirmation of which may well trickle through in the next few weeks according to sources within the parcel carriers.

In New Zealand, FedEx provides freight and small package international delivery services from depots in Auckland, Wellington and Christchurch. FedEx operates its own weekly international cargo flight to and from Auckland airport and also offers an integrated supply chain management service. TNT provides inbound and outbound international delivery services for a range of goods and also has depots in Wellington, Christchurch and Auckland. TNT utilises commercial airlines to transport its goods and operates a ground-based collection and delivery fleet. NZ Commerce Commission Chairman Dr Mark Berry said:

“The Commission is satisfied that the merger will not have, or would not be likely to have, the effect of substantially lessening competition in the affected markets. In our investigation, we found that FedEx and TNT were major suppliers of express delivery services for small packages, but strong competition would continue from DHL Express, the largest market participant, and other competitors such as UPS.”

The acceptance of the deal by the New Zealand authorities is no guarantee that it will proceed unhindered, the commission has until December 7 to pronounce a decision and, in view of the size of the European market, and the fact that the same four players have cornered the market in both arenas it seems unlikely that the EC will accept the deal without imposing some constraints having refused to ratify the last attempted rationalisation when UPS bid for TNT back in 2013.

In other FedEx news the company has committed approximately $1 million in cash and transportation support to deliver emergency supplies and critical medical aid to the thousands of migrants and refugees escaping global conflicts, and provide on-going assistance to both the people and the local communities affected by the crises.

FedEx is mobilizing its humanitarian relief program through a donation of $1 million to the International Federation of Red Cross and Red Crescent Societies (IFRC). The company will also use existing relationships with international organizations, including Direct Relief and Heart to Heart International, working closely with local partners in the most affected countries.

This aid will principally go to assist in countries including Italy, Greece, Serbia, Hungary and Macedonia and FedEx will transport large volumes of medical supplies for use in refugee camps in Jordan, Lebanon and Turkey providing shelter for Syrian refugees on behalf of Direct Relief and take essential hygiene kits for use on the ground by the International Medical Corps in providing emergency healthcare to refugees in Greece for Heart to Heart International.

FedEx will also provide ‘bags to the future’ for the youngest refugees affected by this crisis. Each bag contains toys and other items to help children adapt to their new environment. These are made possible through FedEx employee donations whilst the company will donate cash to the American Red Cross and its Annual Disaster Giving Program.