FedEx seeks EU approval for US$4.9B TNT bid

FedEx has asked the European Union's competition regulator to approve its 4.4 billion euro (US$4.9 billion) bid for Dutch rival TNT Express.


acquisition AFM Deutsche Post European Union FedEx merger TNT UPS


FedEx has asked the European Union’s competition regulator to approve its 4.4 billion euro (US$4.9 billion) bid for Dutch rival TNT Express. The deal will provide the US package delivery service company with a ready-made and extensive European delivery infrastructure.

Reuters reports that FedEx submitted its request to the European Commission on Friday. The preliminary review takes 25 working days, which can be extended by another 10 working days if concessions are offered to head off regulatory worries. FedEx will seek clearance from the Dutch financial market authority AFM before June 30, with the offer expected to close in the first half of 2016.

TNT agreed to a takeover by United Parcel Service (UPS) in 2013 but the deal was rejected by the European Commission.

Analysts said this second attempt is expected to be less problematic as it would create a strong third player in Europe to counter UPS and Deutsche Post.