A top UPS executive today stressed the company is “absolutely committed” to its €5.16 billion offerfor TNT Express where staff have agreed a new one-year pay deal.
Dan Brutto, head of UPS International, told reporters in Brussels that the US company was “committed to working this deal through” and urged the European Commission to be “reasonable” inassessing the competitive and market impact of the merger, according to reports by Bloomberg andReuters.
He was in the Belgian capital to meet with EU officials ahead of the European Commission’sexpected decision to issue a Statement of Objections to the merger very shortly. This could requireUPS and TNT to make concessions such as disposing of some activities in Europe in order to gainregulatory approval.
EU Competition Commissioner Joaquin Almunia has stated that he is concerned about the impacton competition and prices from the merger, which could leave DHL Express and FedEx as the onlymajor international express competitors in Europe to a merged UPS-TNT group.
However, UPS and TNT have argued that the European express market has to be seen more widely,with parcel operators such as GeoPost/DPD and Royal Mail-owned GLS also ranking as significantcompetitors.
Meanwhile, TNT Express and unions have agreed a pay deal for the company’s staff in theNetherlands, Dutch media reported. Some 2,200 employees will receive a 2.2 per cent pay increase,back-dated to July 2012 and running for 12 months.
