United Parcel Service and TNT Express today said they have submitted the offer of remedies that is one of the requirements for obtaining competition clearance from the European Commission (EC) for UPS to acquire TNT Express.
The offer of remedies does not change the terms and conditions of the UPS offer, a joint statement by the parcel-delivery companies said.
The proposed remedies are in response to the EC’s statement of objections given last October to the two logistics companies on the possible adverse effects of the merger on the international express small package market in Europe.
“UPS and TNT Express continue to be fully committed to the merger and are working closely with the EC in order to gain competition clearance allowing completion of the transaction in early 2013. As part of the approval process, the EC will market-test the remedies on a confidential basis,” the joint statement said.
The proposed remedies involve the sale of business activities and assets as well as the granting of access to air capabilities. Earlier this month, The Netherlands-based TNT Express announced it would sell TNT Airways and Pan Air Lineas Areas to the ASL Aviation Group as soon as the proposed merger was completed so as to comply with EU airline ownership and control rules.
No further details of the confidential discussions or proposed remedies were revealed because, according to the statement, the remedies may still change as the discussions proceed.
Under the EU Merger Regulation, the timing of the submission of the remedies extends the EC’s review period by 15 business days to February 5, 2013.
In March this year, Atlanta-based UPS offered to purchase TNT Express for EUR5.16 billion ($6.77 billion). The buy-out of Europe’s second largest package delivery service by the world’s biggest would pave the way for greater access by UPS in the European market.
But approval by the EC of the proposed merger has dragged amid worries of antitrust violations. The acquisition will reduce to three the top four players in the European express delivery sector. The two others are DHL Express and FedEx Express.
Photo courtesy of TNT Express
