Brazil upholds FedEx / TNT decision

After an appeal, presumably by rivals UPS, the Brazilian Conselho Administrativo de Defesa Econômica (CADE) has upheld its decision to approve the merger of the two international delivery companies Fed Ex and TNT.

FedEx went to buy Dutch TNT late last year but has had to get permission from a number of national competition commissions around the world for this to go ahead. The biggest hurdle was the European Commission which disbarred United Parcel Service from buying TNT a few years ago as it would compromise competition in the economic bloc. The EC gave its blessing to the FedEx / TNT deal as FedEx has a much smaller footprint in the EU than UPS.

CADE announced that it had approved the deal on the 18 February but unlike many competitions authorities it has an appeals process. It is assumed that UPS lodged the appeal in attempt to prevent the deal, though no official announcement has been made by the company.

FedEx now has to get the approval of the deal from a number of other countries, of which China’s new competition authority will be one. Where there may have been issues in Europe with two large companies merging with such reach within the area, it is not thought that any other region or country will be as much of an obstacle.

Regarding the CADE decision, FedEx and TNT Express made a statement saying that they are “making timely progress and continue to anticipate that the Offer will close in the first half of calendar year 2016″.

Rivals UPS are well known to be presenting an opposition to this as it will suffer in the long term from FedEx’s presence in Europe. European rivals DHL however have made it plain that they will not be mounting any civil opposition to the deal and rather focusing on gaining business from the merged business as it goes through the trauma of two companies conjoining.