UPS today announced it is extending its offer for TNT Express until November 9, 2012, due to theEuropean Commission’s in-depth investigation into the €5.16 billion ($6.28 billion) takeover and
stressed it still expects the deal to be completed in the fourth quarter of this year.The €9.50 per share offer, which is supported by TNT’s management and supervisory board, was dueto expire on August 31. The formal extension until November 9 will be confirmed through aregulatory announcement on 5 September 2012 once the original offer deadline has expired.
UPS and TNT said in a joint press release that the conditions for completion of the offer, inparticular the antitrust condition, “will not be fulfilled before the expiry of the offer period on31 August 2012”. UPS will therefore extend the offer until 9 November 2012 in accordance with theterms and conditions set out in the offer memorandum of 21 June 2012.
The companies noted that following extension of the offer period, shares tendered during theinitial offer period may be withdrawn. Any shares tendered during the initial offer period and notwithdrawn will remain subject to the offer.
UPS and TNT Express reiterated that they anticipate completion of the offer and close of thetransaction in the fourth quarter of 2012. “UPS and TNT Express remain committed to the offerand are working closely to fulfill all offer conditions,” the two companies declared.
The European Commission announced on July 20 that it would launch an in-depth “Phase 2” into thetakeover in response to potential competition concerns in the small parcel delivery market,especially for international express services. This investigation was due to be completed byNovember 28.
However, the EU competition authority first extended this deadline by 10 working days and thenearlier this month said it was suspending the later deadline until it had gained furtherinformation about the express and parcel markets.
In response to that move, UPS and TNT spokesmen stressed the two companies expected this movewould only result in a “temporary” delay to the deal.
