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UPS Withdraws Offer For TNT Express
By Bill Goldston

January 30, 2013 - United Parcel Service, Inc. today announced the withdrawal of its Offer for TNT Express. TNT Express N.V. is an international courier delivery services company with headquarters in Hoofddorp, Netherlands.  

The firm has fully owned operations in 65 countries and delivers documents, parcels and pieces of freight to over 200 countries. The company recorded sales of over 8 billion in 2011. Its major competitors include FedEx and DHL. TNT Express aircraft operate under the IATA code of TAY (TNT Airways). 

As anticipated, the European Commission (EC) has issued a formal decision prohibiting the proposed acquisition of TNT Express.

As a result of the prohibition by the EC, the Offer Condition relating to EU Competition Clearance will not be fulfilled and the acquisition of TNT Express by UPS will not be completed. Given this outcome, UPS and TNT Express entered a separate agreement to terminate the Merger Protocol.

UPS proposed significant and tangible remedies designed to address the EC's concerns with the transaction concerning the competitive landscape in Europe. UPS believes that the combined company would have been transformative for the logistics industry, bringing meaningful benefits to consumers and customers around the world, while supporting much needed growth in Europe in particular. 

While UPS is disappointed in the EC's decision, the company's focus is on the continued execution of its growth strategy. On March 19, 2012, United Parcel Service announced its intention to acquire TNT Express for USD 6.7B. On September 5, 2012, UPS released a press release stating that the TNT Express acquisition was expected to be completed in early 2013.



Had stated in an earlier release that TNT Express regrets the European Commission’s decision, having believed the merger was feasible and beneficial for all stakeholders. TNT Express’ Executive Board and Supervisory Board recognize the protracted merger process has been a distraction for management. Therefore, management will now solely focus on reassuring customers of TNT Express’ commitment to providing industry-leading services, ensuring engagement and commitment of employees, strengthening its strategy and including further steps to improve profitability. 

Management will provide an update on its strategy in due course. The Executive Board and Supervisory Board of TNT Express acknowledge the great value of the company’s operations, people and commercial proposition, and are confident its strategy will bring value to shareholders.
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