Freight giants TNT and United Parcel Service (UPS) have submitted a
series of remedies to the European Commission (EC) in a bid to secure
regulatory approval for their merger.
On Oct. 19, TNT and UPS received a statement of objections from the European Commission. In its findings, the EC voiced concerns that the tie-up could reduce competition in the express delivery market and ultimately affect consumers.
UPS and TNT have now responded to the objections, saying they have submitted some proposed remedies to the EC. These remedies include the “sale of business activities and assets,” as well as “granting access to air capabilities,” although the specifics are confidential and no further details were given.
“UPS and TNT Express continue to be fully committed to the merger and are working closely with the EC in order to gain competition clearance allowing completion of the transaction in early 2013. As part of the approval process, the EC will market-test the remedies on a confidential basis,” the companies said in a statement. The remedies’ submission will extend the EC’s review period by 15 business days to Feb. 5, 2013.
TNT Express has already agreed in principle to sell its two airlines, TNT Airways and Pan Air, due to ownership restrictions triggered by the merger.
On Oct. 19, TNT and UPS received a statement of objections from the European Commission. In its findings, the EC voiced concerns that the tie-up could reduce competition in the express delivery market and ultimately affect consumers.
UPS and TNT have now responded to the objections, saying they have submitted some proposed remedies to the EC. These remedies include the “sale of business activities and assets,” as well as “granting access to air capabilities,” although the specifics are confidential and no further details were given.
“UPS and TNT Express continue to be fully committed to the merger and are working closely with the EC in order to gain competition clearance allowing completion of the transaction in early 2013. As part of the approval process, the EC will market-test the remedies on a confidential basis,” the companies said in a statement. The remedies’ submission will extend the EC’s review period by 15 business days to Feb. 5, 2013.
TNT Express has already agreed in principle to sell its two airlines, TNT Airways and Pan Air, due to ownership restrictions triggered by the merger.
No comments:
Post a Comment