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

UPS proposes public cash offer to TNT Express N.V.

The acquisition of TNT Express N.V. by the global logistics company UPS has reached a new stage with UPS recommending a public cash offer with a price of EUR 9.50 per share (EUR 5.16 billion in total). 

Image c/o TNT Express

The offer is going to apply to all issued and outstanding ordinary shares including TNT Express American depositary shares. Both companies stated that the decision would be fully supported by the Executive Board and the Supervisory Board of TNT Express.

UPS whose offer had been officially accepted on 19^th March 2012 hopes that the acquisition will help to create a global leader in logistics with an annual revenue exceeding the EUR 45 billion mark. By utilising TNT Express’ highly interlinked European express and road freight network, UPS plans to expand its courier services in Europe. Meanwhile, TNT customers may benefit from UPS success in delivering parcels to the USA as well as to Latin America and the Asia-Pacific region.

A request for the EU regulatory appeal was filed on 15^th June; talks between TNT Express shareholders will continue on 6^th August whilst the offer period will commence on 22^nd June 2012.

For further details about the offer, please visit the UPS Website.

Source: UPS / TNT Express