TNT and UPS still confident of 2013 merger

10/30/2012

UPS and TNT Express are preparing their response to the European Commission’s Statement of Objection after it opposed their €5.2 billion merger last week.

TNT said that open and constructive dialogue was continuing and that the two companies would provide their response to the EC within a couple of weeks. 

The EC would take a final decision following receipt of their response, a TNT spokesman toldLloyd’s Loading List.com. 

UPS’s current offer expires on 9 November but it can extend this period if the Netherlands Authority for the Financial Markets (AFM) approves this extension. If it doesn’t, UPS plans to launch a new public offer on the same terms and conditions. 

Both companies said they were committed to the intended merger and confident that European competition clearance would be achieved, allowing completion of the transaction in early 2013. 

Meanwhile, commenting on this quarter’s developments, Bernard Bot, interim CEO at TNT, said: “TNT Express showed a mixed performance this quarter, with lower results in Europe but improvements in Asia Pacific. In a challenging economic environment, we benefited from our diversified product portfolio and superior customer service. 

“The quarter saw the highest customer satisfaction score ever realised. Customer growth was also good, with notable additional business won in the Automotive, Industrial and High-Tech sectors. 

“Finally, we continue to contain costs and shed loss-making activities to support our operating results. Our cash performance was also strong.”