UPS modifies TNT Express bid to get EU nod
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THE HAGUE, Nov 30 AFP
November 30 2012, 9:22PM
US delivery giant United Parcel Service (UPS) says it has amended its multibillion-euro bid for Dutch firm TNT Express to meet EU conditions and close the deal by next year.
"UPS and TNT announce that in line with Dutch disclosure requirements, remedies have been submitted to obtain competition clearance from the European Commission for the acquisition," a statement said on Friday.
"The proposed remedies aim to address the EC's concerns regarding the competitive effects of the intended merger on the international express small package market in Europe," it added.
In June, UPS launched a 5.16 billion-euro ($A6.47 billion) takeover bid for TNT Express, but European Commission competition authorities announced a month later they would investigate how the deal could affect the European market.
UPS and TNT Express are major players in the sector for delivery of small packages and are two of four firms with a comprehensive air and road delivery network on the continent.
Others present in Europe are DHL, owned by Deutsche Post, and FedEx, a US-based company.
UPS and TNT Express said the proposed adjustments "comprised the sale of business activities and assets in combination with granting access to air capabilities" but declined to give further details.
"UPS and TNT Express continue to be fully committed to the merger and are working closely with the EC to gain competitive clearance allowing the completion of the transaction in early 2013," it said.
TNT Express is a global player operating in more than 200 countries and maintains a leading role in the road freight network in Europe.
UPS is the world's biggest package-shipping group, with annual revenues last year of $US53.1 billion ($A51.14 billion) and 400,000 employees.