UPS’s Revised Offer to EU in TNT Bid Said to Face Market Test
United Parcel Service Inc. (UPS)’s revised concessions in the European Union review of its bid for TNT Express NV (TNTE) were sent today to rivals and customers for comments, a person familiar with the matter said.
UPS, the world’s largest parcel-delivery company, has modified an initial offer that included the sale of some business units and granting access to its air network, according to a person who asked not to be identified because the EU negotiations are confidential. The new offer covers both the divestments and the network access aspects, the person said. The EU has asked for responses by midnight tomorrow in Brussels.
UPS, based in Atlanta, has twice pushed back the target date to complete the 5.16 billion-euro ($6.8 billion) deal, its biggest acquisition in its 105-year history, which will double its size in Europe, as the merger review continues.
The European Commission declined to comment on any offer. David Stuerken, an external spokesman for UPS in London, didn’t immediately reply to a call and an e-mail seeking comment. Reuters reported the remedies offer earlier today.
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