UPS and TNT Express receive extension for offer period

The Netherlands Authority for the Financial Markets (AFM) has granted two of the world’s largest carrier, UPS and TNT, with an exemption to their offer period.

After the EU Commission raised doubts about fair competition amongst carriers in the European logistics market, the AFM now decided to give UPS a second chance to prove itself.

The offer period has been extended to one week after clearances from the Chinese Ministry of Competition and the EU Commission. UPS and TNT will have until 23^rd February 2013 to fulfil the offer condition regarding the competition clearance. Should this date be missed, then UPS will have to pay a high termination fee in the region of EUR 200 million.

Source: UPS

UPS - TNT Express mega deal in danger?

The EU Commission, which currently reviews UPS' proposal to buy TNT Express N.L.,  recently published a Statement of Objections (SO).

As the final date in January 2013 comes closer, the EU Commission now announces concerns about maintaining a fair competition amongst Europe's logistics companies. Specific details have not been revealed yet.

However, UPS and TNT Express published a joint press release stating the the received Statement of Objections was "a normal step in a second phase merger procedure".

Moreover, both companies believe that competition amongst European courier companies will be maintained, if not improved. According to TNT Express and UPS, the industry may even get a step closer to the European objective of having a "Digital Single Market". Both, customers and consumer will benefit from an extensive service range, timings and service reliability.

UPS and TNT Express have promised to respond to the SO within the next two weeks.

Source: UPS / TNT Express

EU Commission resumes its investigations into UPS – TNT Express merger

Yesterday, the EU Commission decided to resume its investigation into the merger of TNT Express NV. and its U.S. competitor UPS.

Image c/o bloomberg.com

An official statement on the Commission’s website confirmed that investigations had resumed on 14^th August after a week’s suspension on the grounds of the participating parties' inability to meet the submission deadline.

Now, a new provisional deadline has been set as 20^th December 2012.

A day before the decision was made, UPS published a statement declaring its intention to apply for a deadline extension in order to get approval for the proposed offer of EUR 9.50 per share.

Both companies remain confident about the 5.2-billion-Euro acquisition which they hope to close by the end of this year.

Sources: PostandParcel.info, MarketWatch.com

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.

Image c/o 3plnews.com

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 12^th 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