By Robin van Daalen
AMSTERDAM--TNT Express NV (TNTE.AE) Supervisory Board Chairman
Antony Burgmans said Monday he is still convinced the European
Commission will approve the acquisition of the Dutch package
shipper by U.S. rival United Parcel Service Inc. (UPS).
"We're absolutely convinced the deal with UPS will go ahead,"
Mr. Burgmans said, adding the antitrust review by the EC was
progressing according to expectations.
In July European Union regulators opened an in-depth probe into
the planned acquisition of TNT Express by UPS. Regulators said they
needed more time to review the merger amid potential competition
concerns in the markets for small parcel delivery services, in
particular international express services, in numerous European
member states.
"That it would be complex in Brussels is what we, as well as
UPS, had expected," Mr. Burgmans said. "We believe that we have put
together a transaction with UPS for which the deal certainty is
extremely high," he added.
UPS, the world's largest package delivery company, clinched an
agreement in March to acquire rival TNT for 5.16 billion euros
($6.39 billion). It initially said it expected to get regulatory
approval for the deal after a first-phase review by the EC. The
opening of the second stage of the probe means regulatory
clearance, if granted, would now be given in the fourth
quarter.
The acquisition would reduce to three the number of big players
in the European express delivery industry and give UPS-TNT a market
share of nearly 40%, based on 2009 figures.
Write to Robin van Daalen at robin.vandaalen@dowjones.com
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