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Industry News

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.”

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Industry News

Profits over safety? LAX FedEx workers sue courier for allegedly ignoring complaints – My News LA

An aircraft technician and his boss who work at FedEx’s Los Angeles International Airport location are suing the courier giant for allegedly ignoring their complaints that the company put profits ahead of safety by not maintaining its aircraft consistent with FAA safety requirements.

Stanley Langevin and Mark Collins filed the whistleblower complaint Wednesday in Los Angeles Superior Court. Collins, who is black and also is Langevin’s supervisor, additionally alleges racial discrimination. The suit seeks unspecified damages.

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UPS Press Release

UPS To Acquire Coyote Logistics

UPS to acquire technology-driven, non-asset based truckload freight brokerage, adding to portfolio with complementary revenue and operational synergies

Transaction Highlights

  • UPS announces agreement to acquire Coyote Logistics for $1.8 billion
  • Expands portfolio, adding large scale non-asset based full-truckload (FTL) and transportation management services
  • Provides growth opportunities for UPS from high growth truck freight market expansion, Coyote organic growth, customer cross-selling
  • Synergies for UPS backhaul utilization and purchased transportation
  • Leadership continuity: CEO Jeff Silver, an industry veteran, will continue to lead Coyote, as a UPS subsidiary
  • Coyote employees, expertise, systems and culture to be supported
  • Accretive to earnings in 2016
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UPS Press Release

UPS Applauds Passage Of Legislative Language To Tax All Fuels Equally

Provision in short-term highway bill extension will end disparity in the way some alternative fuels are taxed

UPS® (NYSE:UPS), a leading global logistics provider, applauds the U.S. Congress for passing legislative language in today’s short-term highway extension equalizing the federal excise tax for liquefied natural gas (LNG) and propane with their counterparts, diesel and gasoline. This federal tax disparity for LNG and propane is perhaps the greatest disincentive to converting large commercial trucking fleets to run on alternative fuels.

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Industry News UPS News

What Does the UPS Earnings Beat Mean for FedEx? – Motley Fool

Domestic demand looks iffy, but European shipment growth bodes well for FedEx’s proposed acquisition of TNT Express.

Profit growth came from international markets

Indeed, operating profit rose just 3% in the U.S. domestic package segment last quarter. The upside in UPS’s results instead came from outside the U.S.

The bottom line is that despite economic weakness in a number of countries, global trade is growing. Intra-Europe shipments rose 8.5% for UPS last quarter. The strong dollar and weak euro have hurt U.S. exports but are boosting import demand in the U.S. European luxury goods companies have also seen good growth in Asia, helped by the weak euro.