China Unconditionally Approves FedEx Acquisition of TNT Express
FedEx Corporation and TNT Express have obtained the unconditional approval of the Ministry of Commerce People’s Republic of China in connection with FedEx’s offer to acquire TNT.
With this approval, the offer condition with respect to competition clearances has now been fulfilled.
“I want to thank the team members who collaborated with regulatory authorities around the world to help us reach this important acquisition milestone,” said David Bronczek, CEO of FedEx Express. “As we work towards closing the acquisition, we look forward to welcoming TNT Express team members to the FedEx family of companies as we expand our portfolio of solutions and connect even more people and possibilities.”
“With this final regulatory approval, we are one step closer to making the vision of combining the complementary networks of FedEx and TNT Express a reality,” said Tex Gunning, CEO of TNT Express. “This intended acquisition will bring value for our customers, shareholders and employees.”
FedEx announced its intention to acquire TNT in April of last year but, in September, the Tennessee-based company faced a major hurdle in its plan after the European Commission in Brussels opened an in-depth investigation into the transaction.
The EC’s has voiced concerns that the combined entity would dominate the delivery of international small packages in some European markets. The commission’s concerns revolved around a number of European markets for international express and regular small package deliveries, where the merged entity would face insufficient competitive constraints from the only two remaining players, UPS and DHL. This, the EC feared could lead to higher prices for business customers and consumers.
After investigation, the European Commission concluded in January that the deal does not raise any competition concerns.