UPS anticipates prohibition of merger – TNT Express to focus on execution of strategy
14-Jan-2013 On 11 January 2013, TNT Express and UPS met with the European Commission's (EC) case team investigating the proposed acquisition of TNT Express by UPS. The case team informed the companies that on the basis of UPS's current remedy proposal it is working towards proposing a prohibition decision.
Subsequently, UPS informed TNT Express that UPS sees no realistic prospect that EC clearance can be obtained and that UPS will not pursue the transaction on any other basis. Formal termination of the Merger Protocol will occur upon receipt of the prohibition decision from the EC, which, based on the above, TNT Express deems inevitable.
TNT Express regrets this situation, having believed the merger was feasible and beneficial for all stakeholders. UPS has confirmed to TNT Express payment of the agreed €200m termination fee.
TNT Express' Executive Board and Supervisory Board recognise the protracted merger process has been a distraction for management. Therefore, management will now solely focus on:
- Reassuring customers of TNT Express' commitment to providing industry-leading services
- Ensuring engagement and commitment of employees
- Strengthening its strategy, including further steps to improve profitability.
Management will provide an update on its strategy in due course. The Executive Board and Supervisory Board of TNT Express acknowledge the great value of the company's operations, people and commercial proposition, and are confident its strategy will bring value to shareholders.