Tags: United Parcel Services | Europe | TNT Express | Bid

UPS Appeals EU’s Rejection of $6.7 Billion TNT Express Bid

Monday, 08 Apr 2013 10:14 AM

United Parcel Service Inc. said it appealed the European Union regulator’s January decision to block its 5.16 billion-euro ($6.7 billion) bid for TNT Express NV, saying the move aims to clarify the legal reasoning rather than renew its interest in the Dutch rival.

“The reason to appeal would be to ensure a more accurate assessment of the EU competitive landscape and that there’s no precedent that could limit international growth opportunity,” Peggy Gardner, a spokeswoman for Atlanta-based UPS, said by telephone.

The world’s largest package-delivery company ended its pursuit of TNT on Jan. 14 after the European Commission’s antitrust regulators indicated they would prohibit the deal. The purchase would have doubled UPS’s footprint in Europe and helped it compete with Deutsche Post AG’s DHL unit.

“The appeal is intended to clarify the EC’s legal assessment of the dynamics of the European express market,” TNT said in a statement today. “It does not imply a renewal or reconsideration of the previously proposed UPS offer.”

The EU formally rejected UPS’s takeover later that month, saying UPS failed to find a suitable buyer for parts of TNT to ensure competition wouldn’t be stifled. UPS was trying to divest parts of TNT to La Poste SA’s DPD unit.

The EU blocked the deal because combining UPS and TNT would have increased express-delivery prices in 29 countries, Competition Commissioner Joaquin Almunia said on Jan. 30.

While the EU had said FedEx Corp. was “the only possible suitable purchaser” for the assets that would need to be divested, that Memphis, Tennessee-based company’s limited reach across Europe meant some customers would only be able to choose between UPS-TNT and DHL for next-day deliveries. FedEx wasn’t interested in buying TNT’s assets.

TNT “continues to focus on the execution of its updated strategy and profit improvement plan” that includes selling businesses in China and Brazil and cutting 4,000 jobs, the Hoofddorp, Netherlands-based company said. On March 28, the company said it would sell its Hoau Chinese domestic road operations to an affiliate of Hong Kong-based Citic Group Corp.

TNT shares fell 41 percent on Jan. 14, the day that UPS said it expected the European Commission to block its bid. The Dutch firm currently has a market value of 3.13 billion euros.

UPS shares rose 1.7 percent the day of the decision, and its market value is $79 billion.

© Copyright 2017 Bloomberg News. All rights reserved.

 
1Like our page
2Share
Companies
United Parcel Service Inc. said it appealed the European Union regulator s January decision to block its 5.16 billion-euro ($6.7 billion) bid for TNT Express NV, saying the move aims to clarify the legal reasoning rather than renew its interest in the Dutch rival.
United Parcel Services,Europe,TNT Express,Bid
390
2013-14-08
Monday, 08 Apr 2013 10:14 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved