United Parcel Service (UPS) said they expect the completion of their proposed takeover of TNT Express to be moved to the fourth quarter of 2012, as they see the European Commission’s review of their proposal taking longer than anticipated.
UPS, the world’s largest package delivery service, said the European Commission is moving into phase two of its investigation into the planned buyout of TNT Express, Europe’s second largest package delivery company.
UPS had initially expected the acquisition to be completed by the end of August, but now said the process may be extended until the fourth quarter “as there are certain areas that require more time to analyze.”
It said a Phase II investigation could take up to 25 weeks to complete.
“It is likely the offer condition relating to competition clearance will not be satisfied by the end of the initial offer period. UPS therefore expects to extend the offer period beyond 31 August 2012 in accordance with its commitment as set out in the Offer Memorandum,” UPS and TNT Express said in a joint statement on July 13.
Atlanta-based UPS made a EUR5.16 billion (US$6.28 billion) acquisition offer to Hoofddorp, Netherlands-based TNT Express in March this year, in a move that would give it a dominant position in the European market.
The review is centered on antitrust concerns since the acquisition will reduce to three the top four players in the European express delivery sector. The two others are DHL and FedEx Express.
“UPS and TNT Express welcome the opportunity to further engage with the Commission’s competition services. UPS and TNT Express remain convinced the merger will benefit customers and other stakeholders and look forward to successful completion of the regulatory process,” the two companies said.
Photo courtesy of TNT Express
