UPS says EU to prohibit TNT deal

United Parcel Service said the European Commission has informed the company that it is working on a decision to prohibit UPS'…

United Parcel Service said the European Commission has informed the company that it is working on a decision to prohibit UPS's proposed acquisition of TNT Express NV.

The world No. 1 package delivery company is seeking to buy Dutch peer and European market leader TNT to gain access to TNT's network in the fast-growing Asian and Latin American markets.

Upon prohibition by the commission, UPS's offer condition relating to EU Competition Clearance will not be fulfilled and the company will pay TNT a termination fee of €200 million and withdraw the offer, UPS said in a statement.

Bloomberg