Australian authorities will not oppose FedEx’s proposed acquisition of TNT
The Australian Competition and Consumer Commission (ACCC) has announced that it will not oppose FedEx’s proposed acquisition of TNT Express. In an official statement issued today (26 November), ACCC Chairman Rod Sims commented: “The ACCC sought information and views from a range of interested parties including online retailers and suppliers of express services. Customers did not raise significant competition concerns with the ACCC.
“Based on market inquiries and information provided by the merger parties, the ACCC determined that the proposed acquisition is unlikely to result in increased prices or reduced service levels. The merged entity will continue to face significant competition, including from other international rivals with significant global delivery infrastructure and networks. The merged entity will also face a credible threat of new entry and expansion by rivals.”
“Customers of express services face low costs to switch suppliers. If the merged entity attempted to increase prices, most customers indicated they could move to other suppliers, most notably DHL or UPS.”
The ACCC added that it consulted other international competition regulators in the course of its review, including the European Commission, whose review is ongoing (but whose regulators have indicated that they will not oppose the move), and the New Zealand Commerce Commission, which recently approved the proposed acquisition.
As Post&Parcel reported yesterday, the US Federal Trade Commission has recently given its approval to the deal.
