TNT, UPS suggest divestments in hunt for Brussels merger approval
Parcel delivery firms TNT and UPS have made suggestions to the European Commission about various concessions they are willing to make in order to win approval for their merger.
In a joint statement, the two companies say the ‘proposed remedies comprise the sale of business activities and assets in combination with granting access to air capabilities’.
But no further details were given because the ‘discussions are ongoing, which means the offered remedies may be subject to change’, the statement said.
Earlier this month TNT announced the sale of its airline operations to the ASL Aviation Group. The sale has been forced because UPS cannot become the owner of a European airline under EU regulations.
Brussels also has objections to the merger because of its likely impact in some countries. The Commission ordered an investigation in July, stating there are only four companies which ‘control a comprehensive air and road small package delivery network throughout Europe and beyond and are capable of offering the broadest portfolio of such services’.
As well as TNT Express and UPS, these are Deutsche Post’s DHL and US firm Fedex, the statement said.
Both TNT and UPS had regarded European approval as a formality.
Thank you for donating to DutchNews.nl.
We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.Make a donation