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Image header Agence Europe
Europe Daily Bulletin No. 10661
ECONOMY - FINANCE - BUSINESS / (ae) competition

Detailed investigation into UPS/TNT merger

Brussels, 23/07/2012 (Agence Europe) - On Friday 20 July 2012, the European Commission opened an in-depth investigation into the proposed acquisition for €5.16 billion of TNT Express of the Netherlands by the American company United Parcel Service (UPS), both major players in the parcel delivery industry. EU Competition Commissioner Joaquín Almunia said: “The proposed acquisition could reduce competition for the provision of the fastest express delivery services, to the detriment of direct customers and ultimately of European consumers”. UPS and TNT, along with DHL (owned by Deutsche Post) and Federal Express of the United States, are the four “integrators” currently operating in Europe, integrators being companies that control a comprehensive air and road parcel delivery network throughout Europe and beyond and are capable of offering the broadest portfolio of such services. TNT being bought up by UPS would reduce the number of integrators to three, thus reducing competitive pressure. The Commission will examine the deal in detail over the next 90 days before deciding whether or not it will impede competition in the European Economic Area. (FG/transl.fl)

 

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