FedEx Express (FX, Memphis International) parent FedEx Corporation has secured unconditional approval from the European Commission (EC) concerning its proposed takeover of logistics firm, TNT Express N.V.
In a statement, the EC said the EUR4.4 billion (USD4.8 billion) deal did not raise any competition concerns in its current form.
“We are extremely pleased to receive the European Commission’s unconditional approval,” David Binks, Regional President Europe, FedEx Express, said. “We believe the combination of TNT Express and FedEx will provide significant value to the employees, customers and shareholders of both companies.”
Following the take-over's announcement in April last year, TNT and FedEx made a number of concessions to help secure EC approval after the body expressed concerns the newly merged entity would face insufficient competitive constraints in several European markets where they would compete with their only two remaining rivals - UPS and DHL.
Concessions included the divestiture of TNT Airways (Liège) and Spanish carrier PAN Air (Madrid Barajas) which FedEx, as a non-European carrier, cannot control. Reports in cargo-sector media have pointed to the ASL Aviation Group possibly attempting to re-acquire both airlines having failed to do so during UPS's failed takeover of TNT Express in 2012.
As it stands, the newly merged entity is to retain TNT's Liege logistics hub while establishing its European regional headquarters at Amsterdam/Hoofddorp.
With shareholders already on-board, FedEx and TNT Express expect the transaction to close later this half although this is dependent on the finalization of regulatory approvals in China and Brazil among other jurisdictions.
