UPS and TNT Express expect EC to prohibit proposed takeover

UPS and TNT Express announced (14-Jan-2013) the European Commission (EC) is working on a decision to prohibit the proposed acquisition of TNT Express by UPS. The decision is expected to be adopted formally in the coming weeks. Upon prohibition by the EC, the Offer Condition relating to EU Competition Clearance will not be fulfilled and UPS will pay TNT a termination fee of EUR200 million and will withdraw the offer. UPS chairman and CEO Scott Davis said, "We are extremely disappointed with the EC's position. We proposed significant and tangible remedies designed to address the EC's concerns with the transaction. The combined company would have been transformative for the logistics industry, bringing meaningful benefits to consumers and customers around the world, while supporting growth in Europe in particular. Looking ahead, our company focus will be on the continued execution of our growth strategy. While we viewed the acquisition as a compelling growth platform, our financial strength allows UPS to capture future opportunities." TNT Express said it believed the merger was "feasible and beneficial for all stakeholders". TNT Express' management now plans to focus on reassuring customers of its commitment to providing industry-leading services, ensuring engagement and commitment of employees and strengthening its strategy, including further steps to improve profitability. [more - original PR - UPS] [more - original PR - TNT Express]