TNT takeover problematic, says EU chief
UPS’s attempted takeover of TNT Express poses serious competition problems that are “not easy” to resolve, the EU competition chief has said, while leaving open the door to an 11th-hour solution to save the proposed deal from being blocked.
The US delivery group is trying to sell France’s DPD a swath of TNT assets that are sufficient in quality and scope to convince Brussels that competition in the express delivery market is maintained.
The proposed remedies are still being reviewed by the European Commission. But Joaquín Almunia, the EU competition commissioner, made plain the difficulties of compensating for the takeover of one of Europe’s four integrators, which combine ground and air transport.
“The elimination of competitors such as TNT, that is an integrator, requires . . . an alternative integrator or someone who will play the same role from the competition point of view with equivalent competitive pressure,” Mr Almunia said.
The commission sees a potential sale to FedEx as a simpler option, because the US group has its own airline and a more developed network in Europe.
– (Copyright 2013 The Financial Times Limited)