UPDATE: TNT and FedEx take note of EC’s Phase II review
TNT has announced that it “takes note” of the European Commission’s decision to initiate a Phase II review of FedEx’s proposed acquisition of TNT – and FedEx reports “progress is being made on all of the necessary regulatory steps around the world”. “The Phase II review is part of the European Commission’s customary investigation process,” said TNT.
The TNT statement added that both FedEx and TNT expect the transaction to close in the first half of 2016, as they indicated back in April.
TNT said that it will continue to cooperate with FedEx and the European Commission with “a view to a positive outcome”.
The company reiterated its view that the merger will create “benefits for all stakeholders” and provide customers with a “considerably enhanced, integrated global network”, which combines “TNT’s strong European capabilities and FedEx’s strength in other regions globally, including North America and Asia”.
FedEx has also responded to the EC announcement. Like TNT, FedEx has issued a statement emphasising that a Phase II review is the usual “next step in the process where the European Commission conducts an in-depth analysis under the EU Merger Regulation before coming to a decision”.
The FedEx statement added out that the transaction “is also being reviewed by other antitrust agencies, including the Ministry of Commerce (MOFCOM) in China and Conselho Administrativo de Defesa Econômica (CADE) in Brazil”.
“We will continue to work together with TNT Express to meet the European Commission’s need for additional due diligence and are confident that the combination of both companies will increase competition and create benefits for customers,” said David Binks, President, FedEx Express – Europe. “We continue to make progress on all of the necessary regulatory steps around the world that would allow us to complete this transaction in the first half of 2016 and unite two great teams that share a passion for customer service.”
The FedEx statement also gave some more background to the review: “On June 26, 2015, FedEx started the formal process to obtain merger control approval from the European Commission by submitting the required filing to obtain regulatory clearance in connection with its intended offer to acquire TNT Express. FedEx has also submitted a request for review and approval of its Offer Document with the Netherlands Authority for the Financial Markets (Stichting Autoriteit Financiële Markten, AFM) on June 26, 2015 as required under Dutch law. Based on the required steps and subject to the necessary approvals, closing of the offer is anticipated in the first half of 2016.”