EU approves FedEx acquisition of TNT Express

Antitrust regulators of the European Union (EU) have approved the proposed acquisition of Dutch parcel company TNT Express by U.S.-based FedEx Corporation on Friday.

Following an in-depth investigation opened in July 2015, the European Commission, EU's top antitrust authority has concluded that the acquisition will not give rise to competition concerns.

The EU said, both companies offer world-wide small package delivery services, but FedEx and TNT are not particularly close competitors. Furthermore, the merged entity will continue to face sufficient competition from its rivals in all markets concerned.

European commissioner Margrethe Vestager, in charge of competition policy, said the EU unconditionally approved the merger as European consumers will not be adversely affected by the deal.

"Many businesses and consumers rely heavily on affordable and reliable small package delivery services, in particular with the growth of e-commerce," she said.

In 2013, the EU prohibited the planned acquisition of TNT by UPS. At the time, the regulators found that the takeover was likely to harm customers by causing price increases.

FedEx is a U.S.-based international provider of small package delivery, freight forwarding and cargo transportation services through its integrated global network.

TNT Express, based in the Netherlands, is active in the global logistics sector, where it provides small package delivery, air and ground freight and freight forwarding services.

FedEx and TNT are two out of four so-called "integrators" currently operating in the small package delivery sector in Europe.

Integrators are companies that control a comprehensive air and road small package delivery network and are capable of offering a broad portfolio of reliable delivery services. The other integrators are Europe-based DHL, owned by Deutsche Post, and U.S.-based UPS. Endit