Wednesday, 15 August 2012

EU Commission stops phase 2 for UPS-TNT acquisition

The EU Commission has called an early end to Phase 2 of the merger between two of the world’s biggest logistics companies, UPS and TNT Express.

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UPS' initial application to purchase TNT Express N.V. for 9.50 EUR per share (EUR 5bn in total) and its plan to sign off the deal by the end of this year maybe in jeopardy after the EU Commission decided to temporarily delay the multi-million-Euro acquisition.
“The Commission has stopped the clock according to Article 11(3) of the Merger Regulation. As son as the Commission receives the necessary information, the clock will be reset again. The deadline will be shifted accordingly,” said Maria Madrid, spokeswoman for the EU Commission.
Under these circumstances UPS will have to revise its original deadline which was already  extended to 12th December.
Peggy Gardner, spokeswoman for UPS, confirmed that “as of right now, we still anticipate an approval in the fourth quarter of the year”.
According to UPS, a temporary delay of this kind would not be unusual for the Commission. Should both companies be allowed to continue with their merger, their annual revenues may exceed EUR 45 bn in total.

Source: Post & Parcel

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