FedEx has cleared the biggest hurdle in its effort to acquire Netherlands-based parcel courier TNT Express by receiving approval from the European Commission.
The European Union has granted unconditional approval for FedEx Corp. to acquire the Netherlands-based global package delivery firm TNT Express.
Regulators determined that the combination of the two express carriers does not raise any competition concerns in the European courier industry.
Industry observers had speculated that the European Commission might seek concessions from FedEx, such as divesting some TNT subsidiaries in certain countries. Regulators were said to be weighing whether the package delivery market would be too concentrated with FedEx, UPS and DHL as the three dominant players, which raised concerns that businesses and consumers would pay higher prices for shipping.
The companies must still obtain approval for the $4.8 billion merger from competition authorities in Brazil and China. FedEx said in a statement the deal is expected to be finalized in the first half of the year.
European Union gives green light to FedEx-TNT merger
