January 14, 2013 / 4:35 PM / in 5 years

EU regulators to block UPS, TNT deal - source

BRUSSELS, Jan 14 (Reuters) - The European Commission has informed national competition regulators in the European Union that it will block a 5.2 billion euro takeover of TNT by U.S. delivery company UPS, a source familiar with the matter said on Monday.

UPS and TNT announced earlier on Monday that they intended to call off their merger after the Commission told them it was likely to be blocked.

“The proposed decision is for a prohibition,” said the person, who declined to be named because of the sensitivity of the matter, referring to a Commission block of a deal.

“The Commission has called for an advisory committee meeting on Friday,” the person added, saying that national regulators would meet in Brussels to hear the Commission’s reasoning.

The regulators’ committee, which is made up of competition experts from the EU’s 27 member states, typically endorses the Commission’s recommendation.

The EU antitrust authority is expected to announce its definitive decision as early as next week.

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