European Commission approves FedEx takeover of TNT

0
279
TNT Boeing 737-400

The European Commission has unconditionally approved the FedEx intended 4.4 billion euro ($4.8 billion) takeover of Dutch courier delivery firm TNT Express.

In a statement released by both, the integrators says they have obtained the backing of the Commission as it concluded that the deal “does not raise any competition concerns”.

FedEx Express regional president for Europe, David Binks says: “We are extremely pleased to receive the European Commission’s unconditional approval. 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 says they 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 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.