FedEx Corporation has gained approval from Brazil’s anti-trust authorities as the Conselho Administrativo de Defesa Econômica (CADE) has rejected a third-party appeal filed by United Parcel Service over the takeover. UPS appealed after Brazil unconditionally approved the $4.8 billion deal in February.
FedEx has already obtained regulatory approval from anti-trust bodies in the EU, and the US while it is still in pursuit of a similar green signal from authorities in China. The consolidation requires obtaining competition approval from all relevant anti-trust bodies in all four countries and regions named above. FedEx and TNT Express have assured that they are progressing in a timely manner towards the consolidation, and that they expect the takeover to go through in the first half of 2016.
According to Brazilian law, United Parcel Service is the only eligible competitor that can appeal against the merger as it is the only classified third-party interested in the case. UPS had attempted to takeover TNT in 2012 however, its bid was rejected by the European Commission on the grounds that it would reduce competition in the entire region.
If the takeover goes through, it would give FedEx access to TNT’s extensive express networks in Europe. TNT’s strength in Europe combined with FedEx’s extensive aircraft fleets and automated facilities would give FedEx a strong foothold in the courier industry.