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TNT Express has reported that members of the TNT Express group and UPS Inc. met with the European Commission’s case team that had been investigating the proposed acquisition of TNT by UPS. They were informed that the Commission’s team was “working towards a prohibition decision.”
Subsequent to this, UPS informed TNT Express it sees “no realistic prospect of obtaining clearance from the European Commission and it will not pursue the transaction.” Formal termination of the Merger Protocol will occur upon receipt of the prohibition decision, which TNT Express said it sees as inevitable.
TNT Express said it believed the merger was feasible and beneficial to all stakeholders. UPS confirmed to TNT Express that it would pay the agreed €200 million termination fee.
TNT Express said its management will now focus solely on reassuring customers of TNT Express’ commitment to provide industry-leading services, ensuring engagement and commitment of employees and strengthening its strategy, including further steps to improve profitability.