UPS seeks EU approval for 5.2 bln euro TNT buy
BRUSSELS, June 15 |
BRUSSELS, June 15 (Reuters) - United Parcel Service Inc (UPS) is seeking EU regulatory approval for its 5.2 billion euro ($6.6 billion) purchase of Dutch peer TNT Express to reinforce its position as the world No. 1 package delivery company.
In addition to boosting its leading position in Europe, the deal will also give UPS access to TNT's stronger networks in the fast-growing Asian and Latin American markets. TNT is twice as big as UPS in Europe.
UPS notified the European Commission of the proposed acquisition on Friday, the EU watchdog said. It will decide by July 20 whether to clear the deal or open an in-depth investigation that could lead to concessions from UPS.
Analysts expect UPS to sell some assets to get regulatory clearance for the purchase, its largest ever.
German rival Deutsche Post DHL has already urged the Commission to examine the deal thoroughly as it would boost UPS' market power in a limited market.
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