UPS-TNT Express merger blows up, leaving the parcel giant’s emerging-market expansion

Discussion in 'The Latest UPS Headlines' started by cheryl, Jan 14, 2013.

  1. cheryl

    cheryl I started this. Staff Member

    UPS-TNT Express merger blows up, leaving the parcel giant’s emerging-market expansion in the ashes - Yahoo

    With the proposed UPS/TNT deal, the EC’s ruling hinged on its defining UPS and its competitors as “integrators”—meaning, express delivery companies that own aircrafts (paywall). The sticking point was that the deal would have seen TNT’s and UPS’s combined European market share (they claim 9.6% and 7.7%, respectively) give dominant player DHL (17.6%) a run for its money, according to Transport Intelligence via Bloomberg. (FedEx’s market share in European express business is a measly 3.3%.)

    After the EC voiced concerns last October that Deutsche Post’s DHL and FedEx would be unable to challenge the merged company, UPS had scrambled to assuage those concerns, proposing the sell-off of various TNT assets (paywall). But because FedEx, apparently, declined to play ball, UPS was left proposing the sale of TNT assets to French deliverer DPD, which the EC evidently deemed insufficiently large to balance out sector competition (paywall).