European Union to Decide on FedEx-TNT Express Merger by Aug. 3
European Union antitrust regulators will decide Aug. 3 whether to clear FedEx’s $4.9 billion bid for TNT Express, Reuters reported.
FedEx, which ranks No. 2 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, is trying to buy the same company that its larger rival, UPS Inc., failed to acquire two years ago because European regulators signaled that they would scuttle the deal.
FedEx sought EU approval for the deal June 26, and a preliminary review by the European Commission takes 25 working days. The review can be extended by another 10 working days if concessions are offered to counter regulatory concerns, according to the news service.
The two companies announced the all-cash offer in April and said the acquisition “will transform FedEx’s European capabilities and accelerate global growth.”
The firms have said there is “a high level of deal certainty” that FedEx could close the transaction. FedEx has a smaller market share than UPS in Europe, where the package delivery of TNT competes with DHL Express, the continent’s largest package carrier.
“Customers will enjoy access to an enhanced, integrated global network, combining TNT Express strong European capabilities and FedEx’s strength in other regions globally, including North America and Asia,” the statement said.
