No objections by EU to FedEx TNT deal

It has been reported by FedEx that the EU antitrust enforcer is unlikely to raise objections to the proposed acquisition of Netherlands based TNT. The EU rejected a previous bid by UPS to take over the Dutch overnight express carrier on basis that it would take too much market share.

When FedEx completes the purchase it will take 30% of the European market, and thereby be the second largest company in the EU market after Deutsche Poste DHL. Should UPS have made the takeover the market share would have been far larger.

Should the EU have problems with a takeover bid the commission would send a ‘charge sheet’ to the bidder listing the issues it has with the bid. This has not appeared. The EU antitrust commissioners are due to report back on January 13.

It has been reported that UPS sent a range of objections to the EU to try to stop the bid, which would leave UPS the third largest player after DHL and FedEx should the deal take place. It is apparent that none of these objections have had the impact sought.