EU: FedEx, TNT 4.4 billion merger set to be cleared unconditionally

FedEx is poised to gain unconditional EU approval for its 4.4 billion euro acquisition of Dutch peer TNT, two people familiar with the matter said on Tuesday, making it Europe’s second-biggest delivery services business.

With a European market share of 17 percent, the combined company would be ahead of UPS but behind Deutsche Post’s DHL business. The deal would also strengthen FedEx’s position as the world’s No.3 player.

TNT shares jumped 10 percent to 7.55 euros on Tuesday — the biggest gainer on the Stoxx European Industrial Goods and Services Index.

The planned reduction in the number of European players from four to three had triggered a full-scale investigation by the European Commission on July 31 because of concern that the deal could reduce competition and result in higher prices.

The EU antitrust enforcer, which subsequently made a price analysis of the bid, had an internal deadline of Oct. 16 to decide whether to send a statement of objections listing problematic issues to FedEx.

Full content: Reuters

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