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US transport dept will not block DHL-UPS deal

DHL air hub at Wilmington, USA

The US Department of Transportation will not block the proposed cooperation deal between DHLExpress and UPS, according to US media reports.



Responding to a letter from Ohio’s governor and his deputy calling on the federal governmentto block the deal over possible competition issues, the transportation secretary Mary Peters saidthat in her view the DHL US Express restructuring “would not constitute an unfair or deceptivepractice or unfair method of competition”, the Dayton Daily News reported, citing an August 15letter to the Ohio officials.

A spokeswoman for Ohio governor Ted Stickland said that the response was “disappointing” butwould not interfere with parallel efforts to obtain an anti-trust investigation through the USDepartment of Justice, the Wilmington News Journal added.

Ohio politicians are campaigning to prevent the DHL-UPS deal and closure of DHL’s US air hubat Wilmington with the expected loss of some 8,000 jobs. Deutsche Post World Net executives haverepeatedly stressed that the restructuring plans are necessary to reduce DHL Express’ heavy lossesin the USA.

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