UPS and TNT Express expect the European Commission’s suspended investigation into their mergerto result only in a “temporary” delay to the €5.2 billion deal.
Spokesmen for the two companies told CEP-Research that UPS’ acquisition of TNT Express was stillexpected to be completed in the fourth quarter of this year.
The European Commission has delayed its in-depth investigation into the merger in order to getmore detailed information about the express and parcel markets. It first extended a November 28deadline to complete its in-depth Phase 2 investigation by 10 working days and has now suspendedthis later deadline entirely. The Brussels-based authority will “reset the clock” once it hasobtained the required information.
UPS Europe spokesman Anton Van der Lande said: “UPS has been notified of what is expected to bea temporary delay in the European Commission’s review process for phase II. Suspensions are notuncommon and we still expect a closing in the fourth quarter.”
TNT Express spokesman Cyrille Gibot added: “A so-called Phase II review is not uncommon and doesnot prejudge the outcome of the EC’s investigation. UPS and TNT still expect the deal to be closedduring the fourth quarter.”
UPS’ agreed offer for all TNT shares at €9.50 a share is running parallel to the EuropeanCommission investigation. The initial offer period, which started on 22 June, lasts until August 31but can be extended if necessary by between two and ten weeks.
