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Martin Murray

UPS Drops Bid for TNT

By January 15, 2013

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The European competition commissioner has poured cold water on the potential merger of shipping companies UPS and TNT. The $6.9 billion takeover offer has now been withdrawn after the commissioner indicated they would block the deal over antitrust concerns. The deal would have left two main shipping companies in Europe, DHL and UPS, which was a concern to the commission. The failure of the merger has left TNT is a worse position as the companies share price dropped 41 percent after the decision was announced.

UPS has been working on this deal since March 2011 and has needed to update their offer for TNT three times. UPS had been trying to offload some of TNT's assets to another company to help with antitrust concerns. However FedEx has been unwilling to participate in any deal, but UPS had found that French shipping company DPD would join the deal as well as TNT selling off its airline. In the end, the patchwork deal was still too much for regulators to accept.

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Comments

January 19, 2013 at 4:29 pm
(1) Bill Coulder says:

Very glad that this deal did not got through. I think it was a bad deal of UPS and although they really want to be number one in Europe this was not the option.

January 19, 2013 at 5:19 pm
(2) Jason F Ross says:

I thought FedEx would pick up the crumbs left by the UPS/TNT deal, but apparantly not.

January 20, 2013 at 10:38 am
(3) Sal Bhatnagar says:

I had not heard much about the UPS/TNT purchase, but I am not surprised by the EU and their anti-trust decision. Didn’t they kill the AT&T/T-mobile thing too?

January 20, 2013 at 2:44 pm
(4) Mike Turner says:

It was a big surprise that the UPS – TNT deal failed. I thought it was really going to come off.

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