No, UPS did not acquire TNT Express. The proposed acquisition was blocked by the European Commission.
The Proposed UPS-TNT Express Merger
In a significant decision regarding competition in the European express delivery market, the European Commission prohibited the proposed acquisition of TNT Express by UPS. This decision was made under the EU Merger Regulation, preventing the American logistics giant from taking over its Dutch rival.
Why the Acquisition Was Blocked
The European Commission's decision to block the merger stemmed from concerns that the acquisition would significantly reduce competition in the market for small package delivery services across the European Economic Area. The Commission concluded that the merger would have led to:
- Reduced Choice: Limiting the number of strong players offering a comprehensive range of express delivery services.
- Higher Prices: Less competition could result in increased costs for businesses and consumers relying on these services.
- Lower Quality of Service: With fewer alternatives, there would be less incentive for companies to innovate and maintain high service standards.
The prohibition was specifically aimed at maintaining a competitive environment in a sector crucial for businesses, particularly those engaged in e-commerce and international trade.
Aftermath of the Blocked Deal
Following the European Commission's prohibition, the acquisition could not proceed. Both companies continued to operate independently. Later, in 2016, TNT Express was successfully acquired by FedEx, another major global logistics company, after a separate regulatory review process.
The failed UPS-TNT Express deal serves as a clear example of how merger control regulations, particularly in the European Union, are applied to prevent market dominance and ensure fair competition.
