Dutch parcel delivery company TNT Express has announced that a planned merger with UPS will not materialize. The US firm has shied away from the takeover as EU regulators have voiced their misgivings.
Parcel delivery firm TNT Express of the Netherlands said on Monday hopes for a merger with UPS in the US had been buried. It reported the American company had walked away from a $6.8-billion (5.2-billion-euro) acquisition of the Dutch company.
In March of last year, UPS offered to buy the struggling TNT, Europe's second-largest delivery company, with a view to better competing with the continent's giant in the sector, Deutsche Post's DHL of Germany.
UPS CEO Scott Davis said "he was disappointed" at the failure to take TNT Express on board and cited EU regulators who had revealed their resolve to reject the takeover deal.
Quo vadis TNT?
As early as October last year, EU anti-trust authorities said the deal would most likely lead to over-concentration in the sector which saw UPS offering to sell parts of the company's small-package operations and airline assets.
But after a meeting with regulators last Friday, UPS hinted it saw no hope the deal would be approved and added it was not interested in further concessions.
TNT Express is to receive a $200-million break-free compensation from UPS for the withdrawal of the takeover bid, with the ailing Dutch company facing now facing an uncertain future.
hg/sej (dpa, Reuters, AP)