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The European Commission Unconditionally Apporves The FedEx-TNT Acquisition

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13 Jan 2016
By admin
European Commission FedEx & TNT

The purposed $4.8 billion acquisition of TNT by FedEx has received the news they wished to hear from the European Commission, an unconditional approval has been awarded to the project

 

Finally, after a long wait the European Commission has given a green signal to the FedEx-TNT acquisition process. The news has been received from the European Commission and companies say that they have received an unconditional approval of the EC. The EC said that this deal doesn’t raise any kind of competition concerns at all.

What FedEx said?

The regional president of FedEx Express, Europe has said in a statement that the company is extremely pleased with this decision by the European commission officials to unconditionally give a go to FedEx-TNT acquisition.

He further said that the FedEx believes that the acquisition of TNT Express will offer a significant value to its stakeholders including the employees, customers and the shareholders of both FedEx and TNT.

What TNT Officials said?

The officials at the TNT Express said that they will continue to work positively with the European Commission and its regulatory authorities in the future as well and will soon obtain clearance of the transaction in those jurisdictions, left unattended so far.

These include Brazil and China and the company will make timely efforts to make it happen. However, TNT will continue to take part and help FedEx in all the issues relating to this acquisition process.

The European Commission Concerns

This is not the first time when TNT has involved in a deal with any global cargo player. In 2012, TNT was close to being acquired by the FedEx Express’s major rival United Parcel Service for $68 billion, but it was packed out because of a formal decision from the European Commission executive body and the European Union officials. The major concerns over that deal were the development of competitive parcel environment in the Europe.

This time FedEx Express has confirmed that the acquisition will present a highly pro-competitive environment for the provisions of small parcel delivery in and the outside of the Europe.

What FedEx would pay TNT in a breakup?

FedEx is about to pay TNT $200 million in the form of a breakup fee, if the deal should not come to an end.

The collective headquarter of the both companies FedEx and TNT will be in Amsterdam and that the TNT Express Hub in the Liege will be designed to work as special operations division of the group.

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