Friday, February 19, 2016

UPS (Allegedly) Fights Back at FedEx TNT Express Freight Merger

Someone Is Unhappy After Antitrust Decision Favours Takeover
Shipping News Feature
BRAZIL – EUROPE – FedEx and TNT have received their first major setback to their planned merger after an ‘unnamed third party’, unsurprisingly believed to be UPS, filed an appeal with Brazil's antitrust authority, Cade, following their recent decision to allow the proposed €4.4 billion acquisition of the Dutch parcel carrier TNT Express by express freight group and US rival, FedEx. Brazil was by no means the first country to give the go-ahead, but by law in Brazil an option to file an appeal for a more in-depth review was exercised, though the news does not seem to worry FedEx and TNT as both expect the deal to close in the first half of 2016.

In the meantime, FedEx and TNT will continue to work with the regulatory authorities to obtain clearance of the transaction in the relevant jurisdictions, including China, and says that they are making timely progress. This merger attempt between FedEx and TNT has already been given the green light by many antitrust authorities around the world including Europe, the US, Taiwan, Australia, and New Zealand, as well as Brazil.

The news that the third party was likely to be UPS came as no surprise after the US parcel giant ultimately abandoned its attempt in a similar endeavour. In January 2013, the EC blocked a takeover attempt of TNT Express by UPS over worries that the combined company would become a duopoly with DHL the other major competitor. The regulator then had concerns that FedEx would be shut out of the European market. Both DHL and FedEx lobbied against the merger. UPS had bid €5.16 billion for the Dutch group in 2012, compared to this latest bid of €4.4 billion lodged by FedEx.