European Commission Says No to $6.9B UPS, TNT Deal
If the deal had gone through it would have expanded UPS' European shipping capabilities
The European Commission is working on a decision to prohibit shipping company United Parcel Service Inc.’s (NYSE: UPS) proposed €5.16 billion (U.S. $6.88 billion) acquisition of TNT Express (NYSE: TNTE).
Atlanta-based UPS proposed its original deal on March 19 and has revised the proposal twice.
“The combined company would have been transformative for the logistics industry,” says Scott Davis, UPS’ chief executive and chairman.
The European Commission has not yet issued a formal decision but has informed UPS and TNT that it is working on one.
The purchase price would have been $12.67 per TNT share. UPS planned to pay $3 million in cash and finance the rest. If the deal had worked out, it would have increased UPS’ European shipping services.
TNT, a shipping company headquartered in Hoofddorp, Netherlands, delivers almost 1 million packages per day and had revenues of $9.67 billion in 2011.
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