Brazil clears FedEx and TNT after UPS Appeal
03-30-2016, 10:44 AM
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Brazil clears FedEx and TNT after UPS Appeal
Brazil rejects UPS appeal to FedEx/TNT deal | Air Cargo World
A last-minute attempt to derail the planned FedEx/TNT Express merger was thwarted today by Brazilian regulators, when they rejected an appeal by rival UPS, which had objected to the deal on antitrust grounds.
The Brazilian regulatory agency, known as Conselho Administrativo de Defesa Econômica (CADE), said it will uphold its “unconditional approval of FedEx’s intended acquisition of TNT Express,” which already had been granted on Feb. 2.
UPS had responded to the Feb. 2 ruling by exercising its legal option on Feb. 18, requesting that CADE “consider a more in-depth review of an initial finding” to ensure what UPS called “a fair and thorough investigation” of the proposed merger, said to be worth about US$4.8 billion.
With Brazil’s approval upheld by CADE, this leaves only the regulatory system of China as the final hurdle in the lengthy competition clearance process that followed the announcement of the proposed merger last year. Both FedEx and TNT said they expect to have little resistance from China, but no timeline for approval has yet been set.
In a joint statement released today, FedEx and TNT said both companies “have obtained unconditional competition approval in the EU, Brazil and the United States of America and continue to work constructively with regulatory authorities to obtain clearance of the transaction in the remaining relevant jurisdictions, including China.”
The two companies also said they are “making timely progress” with competition clearance and “continue to anticipate that the offer will close in the first half of calendar year 2016.”
A last-minute attempt to derail the planned FedEx/TNT Express merger was thwarted today by Brazilian regulators, when they rejected an appeal by rival UPS, which had objected to the deal on antitrust grounds.
The Brazilian regulatory agency, known as Conselho Administrativo de Defesa Econômica (CADE), said it will uphold its “unconditional approval of FedEx’s intended acquisition of TNT Express,” which already had been granted on Feb. 2.
UPS had responded to the Feb. 2 ruling by exercising its legal option on Feb. 18, requesting that CADE “consider a more in-depth review of an initial finding” to ensure what UPS called “a fair and thorough investigation” of the proposed merger, said to be worth about US$4.8 billion.
With Brazil’s approval upheld by CADE, this leaves only the regulatory system of China as the final hurdle in the lengthy competition clearance process that followed the announcement of the proposed merger last year. Both FedEx and TNT said they expect to have little resistance from China, but no timeline for approval has yet been set.
In a joint statement released today, FedEx and TNT said both companies “have obtained unconditional competition approval in the EU, Brazil and the United States of America and continue to work constructively with regulatory authorities to obtain clearance of the transaction in the remaining relevant jurisdictions, including China.”
The two companies also said they are “making timely progress” with competition clearance and “continue to anticipate that the offer will close in the first half of calendar year 2016.”
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