FedEx Faces In-Depth EU Probe Into Bid to Take Over TNT - Bloomberg
FedEx Corp. faces an in-depth probe into its bid to take over TNT Express NV just two and a half years after European Union regulators thwarted United Parcel Service Inc.’s attempt to buy the Dutch company.
The FedEx-TNT tie up may cut competition in the market for small packages and lead to higher prices, the European Commission, the EU’s executive arm, said Friday.
The EU “said all along they were going to leave no stone unturned. How could they not do an in-depth review when they rejected the UPS-TNT merger?” said Kevin Sterling, an analyst with BB&T Capital Markets, who recommends holding FedEx shares. “Think of the scrutiny they gave UPS-TNT. They have to do this. They absolutely have to.”
FedEx Corp. faces an in-depth probe into its bid to take over TNT Express NV just two and a half years after European Union regulators thwarted United Parcel Service Inc.’s attempt to buy the Dutch company.
The FedEx-TNT tie up may cut competition in the market for small packages and lead to higher prices, the European Commission, the EU’s executive arm, said Friday.
The EU “said all along they were going to leave no stone unturned. How could they not do an in-depth review when they rejected the UPS-TNT merger?” said Kevin Sterling, an analyst with BB&T Capital Markets, who recommends holding FedEx shares. “Think of the scrutiny they gave UPS-TNT. They have to do this. They absolutely have to.”
