November 7, 2012 / 3:32 PM / 5 years ago

UPS to defend TNT takeover November 12 says EU Commission

2 Min Read

A bicycle delivery man rides past a UPS truck in New York's Times Square, July 23, 2012.Brendan McDermid

BRUSSELS (Reuters) - United Parcel Service (UPS.N) will seek to convince skeptical EU regulators about its proposed 5.2 billion euros ($6.7 billion) takeover of TNT Express TNTE.AS at a closed-door hearing on November 12.

The European Commission last month warned the world's No. 1 package delivery firm about the combined company's' high market share and would be seeking concessions before it would approve the deal.

Analysts said the merged entity would control a quarter of the market, ahead of Deutsche Post unit (DPWGn.DE) DHL's 19 percent.

The EU authority detailed potential problems in a 360-page confidential statement of objections or charge sheet, focusing on the intra-European express delivery market, according to sources.

UPS is likely to offer concessions after the hearing towards the end of November. The TNT deal is the biggest in the U.S.-based company's 105-year history. FedEx (FDX.N) also competes with UPS. ($1=0.7711 euros)

Reporting by Foo Yun Chee; Editing by Mike Nesbit

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below