A case team from the European Commission has informed officials from UPS and TNT Express that it’s rejecting a proposed $6.3 billion merger between the two integrators.
UPS officials have told TNT Express that they see no path toward acquiring the company and will not pursue the transaction without EC approval. The merger, originally announced in March, was estimated to go through during the fourth quarter of 2012. UPS will now pay TNT a $267 million termination fee.
The decision is expected to be adopted formally in the coming weeks. Shares of TNT are currently down as a result of UPS’ decision.
“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,” UPS’ Scott Davis said in a statement. “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.”
European Commission blocks UPS-TNT merger
