Brazil approves FedEx takeover of TNT Express

TNT Boeing 737-400

Brazil’s Conselho Administrativo de Defesa Econômica, the country’s competition authority, has unconditionally approved the FedEx acquisition of TNT Express.

FedEx and TNT made a joint statement to reveal the news and it comes after the European Commission gave the green light for the 4.4 billion euro ($4.8 billion) takeover of the Dutch courier delivery firm last month.

FedEx Express president and chief executive officer, David Bronczek says: “We are very pleased with the unconditional approval from the Brazilian regulatory authority.

“Once the acquisition is closed, we look forward to the opportunities it will bring to our employees, customers and shareholders in Latin America and across the globe.”

The companies have also received unconditional approval from the US. Under Brazilian law, the decision may be appealed within 15 calendar days of the official publication of the decision.

FedEx and TNT say they continue to work constructively with the regulatory authorities to obtain clearance of the transaction in the relevant jurisdictions, including China.

Both add they are making timely progress and continue to anticipate that the offer will close in the first half of calendar year 2016.

The integrators reached a conditional agreement on the deal in April, before FedEx made the offer in August and TNT shareholders approved it in October.

The European competition authorities rejected a 5.2 billion euro offer for TNT by UPS two years ago, but the FedEx deal was given the green light as it has less activity in the European market.

The takeover would give FedEx a significant foothold in the European express market. Industry forecasters say the two firms will have a combined 17 per cent share in Europe, in second place to DHL, but ahead of UPS.