Home » 3PL/4PL, Breaking News » UPS, TNT Express get EC’s statement of objections

U.S.-based package delivery firm United Parcel Service (UPS) and Dutch competitor TNT Express confirmed their receipt of a statement of objections (SO) from the European Commission (EC) questioning the impact of their intended merger on the competition in the international express small package market in Europe.

These competitive effects will be further defined as the process continues, the companies said in a joint statement. They added that the SO was a normal step in a second-phase merger procedure. “It is a confidential document that sets out a provisional position of the Commission and does not prejudge the final outcome of the case.”

UPS and TNT Express said they would respond to the EC within a couple of weeks.

“UPS and TNT Express believe competition in Europe continues to be significant, coming from multiple players who offer similar services. The combined company will help create a more efficient logistics market, thereby improving the competitiveness of Europe and the solutions offered to businesses and consumers.”

They pointed out the benefits of the planned merger, including improvements to e-commerce to hasten a single EU digital market, a broader portfolio of services and better global access, lower supply-chain costs, and improved service in terms of timing and reliability.

UPS and TNT Express said that they will work closely with the European Commission during this process, and that they hope to complete the transaction in early 2013.

In March this year, UPS agreed to purchase TNT Express for EUR5.16 billion ($6.77 billion). The buy-out of Europe’s second largest package delivery service by the world’s biggest would pave the way for greater access by  Atlanta-based UPS in the European market.

But approval by the EC of the proposed merger has dragged, as the commission continues its thorough review of the plan amid worries of antitrust violations. The acquisition will reduce to three the top four players in the European express delivery sector. The two others are DHL Express and FedEx Express.


Photo: BriYYZ

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