November 30, 2012
On Friday, UPS (NYSE: UPS ) and proposed acquisition TNT Express announced the steps they are prepared to take in order to receive approval from the European Commission for their merger.
Termed an "offer of remedies," the steps in question are designed to allay concerns the EC has expressed regarding anticompetitive effects the UPS-TNT merger may have on the parcel delivery market in Europe. The companies conveyed their offer to the EC on Friday, and said their offer includes "the sale of business activities and assets in combination with granting access to air capabilities" to rival companies.
Now, the EC will confidentially "market-test" the proposed remedies, to see whether they would in fact maintain competition in the market. The EC's review period extends to Feb. 5.
The companies did not provide specifics on their offer, although they did say that the offer is subject to change in response to feedback from the EC. If all goes well and their offer is ultimately accepted, the companies expect to conclude their merger in early 2013.