FedEx Wins Brazil’s Final Approval of TNT Acquisition
Brazil’s regulatory agency has given final approval to the planned $4.9 billion combination of FedEx Corp. and European package and logistics operator TNT N.V., turning aside an appeal from rival UPS Inc.
The announcement by the two companies followed the action by Conselho Administrativo de Defesa Economica, or CADE. That agency had been considering UPS' request to further review the combination to ensure “a fair and thorough investigation.” The request from FedEx’s competitor was made last month under the terms of Brazil's merger review process.
China is the only large nation that still is reviewing the proposal, which has been cleared by regulators in Europe, the United States and more than a dozen other countries.
In the statement, the companies said they hope to complete the transaction by June 30 and are continuing to make “timely progress” on securing the remaining approvals.
FedEx, which ranks No. 2 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, in April of last year offered 9 euros per share for TNT. In 2013, the European Commission scuttled UPS’ bid to buy TNT, saying that the combination of the second- and third-largest package carriers in Europe would reduce competition.
Deutsche Post’s DHL Express is the largest package carrier in Europe. FedEx is No. 4.
