UPS ends deal with TNT

European regulators did not give the permission to go ahead with the deal

Deutsche Post's DHL European Commission shares takeover TNT Express NV United Parcel Service UPS

United Parcel Service (UPS) has walked out of the $6.9 billion (€5.2 billion) takeover of TNT Express NV after it became apparent that the European Commission would reject the deal. TNT will receive a $265.5 million (€200 million) break fee but its future remains bleak: shares went down 50 per cent in the first minutes of Monday trading in Amsterdam following the news about UPS moving out. In May 2012, UPS had offered to buy TNT to counter the competition posed by Europe’s largest express provider, Deutsche Post’s DHL. However, after the January 11 meeting with regulators, UPS said that it did not see the deal being approved.