Fedex Says Has Requested EU Approval For $4.9 Billion TNT Bid
FedEx (FDX.N) has asked the European Union’s competition regulator to approve its 4.4-billion-euro ($4.9 billion) bid for Dutch rival TNT Express (TNTE.AS), the U.S. package delivery service company.
The deal, which will combine FedEx’s air fleet with TNT’s sizeable European road network, will extend FedEx’s reach in competition with United Parcel Service (UPS.N) and Deutsche Post (DPWGn.DE).
FedEx submitted its request to the European Commission on Friday, spokeswoman Nira Gale said.
The EU competition authority’s preliminary review takes 25 working days, which can be extended by another 10 working days if concessions are offered to head off regulatory worries.
FedEx will seek clearance from the Dutch financial market authority AFM before June 30, with the offer expected to close in the first half of 2016, Gale said.
TNT agreed to a takeover by UPS in 2013 but the deal was rejected by the European Commission.
Analysts said this second attempt is expected to be less problematic as it would create a strong third player in Europe to counter UPS and Deutsche Post.