Veto fears see UPS pull out of offer

United Parcel Service said it will withdraw its 5.2 billion euro (£4.3bn) bid for TNT Express because it expects the European Commission (EC) to block the deal.

UPS, the world’s number one package delivery company, was seeking to buy Dutch peer and European market leader TNT Express to gain access to its network in the fast-growing Asian and Latin American markets.

The EC has informed UPS and TNT Express that it is working on a decision to prohibit the proposed acquisition, the two companies said in separate statements.

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“UPS will pay TNT a termination fee in the amount of 200 million euros and will withdraw the offer,” once the formal decision is taken, UPS said yesterday. The collapse of the deal is a blow for TNT Express, which has struggled to turn around in a weak European market.

The US delivery company had offered various concessions in a bid to win EU regulatory approval for its bid, including a proposal to sell warehouses and customer bases in about 15 countries, mainly based in eastern Europe.

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