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EU opens in-depth investigation into FedEx takeover of TNT

Xinhua, July 31, 2015 Adjust font size:

An in-depth investigation was opened to assess whether FedEx's 4.4-billion-euro takeover of Dutch rival TNT is in line with the European Union (EU) law, EU's executive the European Commission announced on Friday.

The Commission said it has concerns that on a number of European markets for international express and regular small package deliveries, the merged entity would face insufficient competitive constraints from the only two remaining players UPS and DHL.

Commissioner Margrethe Vestager, in charge of competition policy, said the Commission must make sure that the takeover "would not impede effective competition and would not lead to higher prices for consumers."

FedEx and TNT are two of the only four "integrators" currently operating in Europe. "Integrators" are companies that control a comprehensive air and road delivery network throughout the continent and beyond and are capable of offering a broad portfolio of small package delivery services.

The other "integrators" present in Europe are DHL, owned by Deutsche Post, and UPS, a US-based company.

The Commission noted it has 90 working days, until Dec. 8, to investigate the proposed acquisition and to determine whether initial concerns are founded. Endit