Jan 08, 2016: The European Commission (EU) has approved the FedEx acquisition of TNT Express ($4.8 billion deal), which was first announced in April 2015.
“We are extremely pleased to receive the European Commission’s unconditional approval,” said David Binks, regional president Europe, FedEx Express. “We believe the combination of TNT Express and FedEx will provide significant value to the employees, customers and shareholders of both companies.”
FedEx and TNT Express continue to work constructively with the regulatory authorities to obtain clearance of the transaction in the remaining jurisdictions, including Brazil and China. FedEx and TNT Express are making timely progress and continue to anticipate that the Offer will close in the first half of calendar year 2016.
Currently, clearances have been obtained from the relevant competition authorities in the United States and, as mentioned, the EU.
Also, UPS had suffered a major problem with EU denying its purchase of struggling TNT in 2013; EU being concerned about competition. The company revised its offer three times, even offering to create a new pan-European competitor, but failed to convince regulators that the plan was credible enough.
FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services.