• DATVF.ATLPHL
    1.814
    0.044
    2.5%
  • DATVF.CHIATL
    2.034
    0.018
    0.9%
  • DATVF.DALLAX
    0.921
    0.071
    8.4%
  • DATVF.LAXDAL
    1.502
    -0.092
    -5.8%
  • DATVF.SEALAX
    0.962
    -0.053
    -5.2%
  • DATVF.PHLCHI
    1.091
    -0.038
    -3.4%
  • DATVF.LAXSEA
    2.146
    -0.004
    -0.2%
  • DATVF.VEU
    1.647
    0.009
    0.5%
  • DATVF.VNU
    1.471
    -0.010
    -0.7%
  • DATVF.VSU
    1.211
    -0.011
    -0.9%
  • DATVF.VWU
    1.554
    -0.028
    -1.8%
  • ITVI.USA
    9,689.350
    14.490
    0.1%
  • OTRI.USA
    7.650
    -0.020
    -0.3%
  • OTVI.USA
    9,678.010
    13.740
    0.1%
  • TLT.USA
    2.730
    0.000
    0%
  • WAIT.USA
    156.000
    -2.000
    -1.3%
  • DATVF.ATLPHL
    1.814
    0.044
    2.5%
  • DATVF.CHIATL
    2.034
    0.018
    0.9%
  • DATVF.DALLAX
    0.921
    0.071
    8.4%
  • DATVF.LAXDAL
    1.502
    -0.092
    -5.8%
  • DATVF.SEALAX
    0.962
    -0.053
    -5.2%
  • DATVF.PHLCHI
    1.091
    -0.038
    -3.4%
  • DATVF.LAXSEA
    2.146
    -0.004
    -0.2%
  • DATVF.VEU
    1.647
    0.009
    0.5%
  • DATVF.VNU
    1.471
    -0.010
    -0.7%
  • DATVF.VSU
    1.211
    -0.011
    -0.9%
  • DATVF.VWU
    1.554
    -0.028
    -1.8%
  • ITVI.USA
    9,689.350
    14.490
    0.1%
  • OTRI.USA
    7.650
    -0.020
    -0.3%
  • OTVI.USA
    9,678.010
    13.740
    0.1%
  • TLT.USA
    2.730
    0.000
    0%
  • WAIT.USA
    156.000
    -2.000
    -1.3%
American ShipperShipping

Report: EU court reverses ruling on 2013 UPS-TNT deal

A European Union court on Tuesday struck down a 2013 decision by the European Commission to block the parcel giant’s planned takeover of Netherlands-based express carrier TNT Express, which was later acquired by UPS arch rival FedEx.

   A European Union court has struck down a 2013 decision by the European Commission to block parcel giant UPS Inc. from purchasing Netherlands-based express carrier TNT Express, according to multiple media reports.
   The EC nixed the proposed $6.9 billion deal in January 2013 after finding a merger would give UPS too great a market share in Europe and subsequently seeking divestitures the company was unwilling to make.
   This left the door open for UPS arch rival FedEx, however, which made a $4.8 billion offer for TNT in April 2015 and consummated the purchase in May 2016.
   Analysts said at the time the FedEx-TNT tie-up was approved because FedEx is a smaller player in Europe than UPS and it allows for three major competitors (including Germany’s Deutsche Post DHL Group), as well as smaller regional couriers.
   Judges for the EU General Court on Tuesday upheld an appeal from UPS challenging the initial ruling, citing a “procedural irregularity.”
   According to a report from Reuters news service, the court ruled the EC had infringed UPS’s rights of defense by using a different econometric model in its analysis than in previous decisions.
   “UPS might have been better able to defend itself if it had at its disposal, before the adoption of the contested decision, the final version of the econometric model chosen by the Commission,” the General Court said in a statement.
  Although the ruling cannot undo the damage done by blocking UPS’s purchase of TNT and subsequently allowing the FeEx deal, UPS could potentially sue the EU for damages, James Killick, a partner at law firm White & Case, told Reuters.
   “I don’t think you can undo the two mergers,” he said. “You can’t rewrite history. The ruling shows, however, the importance of due process especially in the merger process where time is short.”
   UPS reportedly said in a statement it was pleased with the court’s decision, but did not say if it would seek damages as a result of the ruling.
   “While the decision in UPS’s favor makes a number of points, the most significant of this decision is its impact in helping to preserve a competitive environment in Europe by clarifying the procedure and relevant criteria for merger approval,” the company said.
   Asked about the ruling, EC spokesman Ricardo Cardoso told ABC News the commission is “studying it very carefully,” but has no further comment at this time.

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