JOC Staff | Jan 14, 2013 9:06AM EST
UPS today said it will withdraw its $6.9 billion offer to acquire Dutch shipping company TNT Express, after competition authorities at the European Commission informed UPS that it would block the arrangement.
The deal, which would have boosted UPS’ presence in European markets, was first announced in March 2012. UPS said it will pay TNT a termination fee of 200 million euros (about US$267 million) once the EC formalizes its prohibition.
European officials feared the takeover would hamper competition, The New York Times reported. UPS had agreed to sell a number of business units and grant access to some of its airline network to rivals, but the concessions were deemed insufficient.
“We are extremely disappointed with the EC’s position,” said Scott Davis, UPS chairman and CEO, in a written statement. “We proposed significant and tangible remedies designed to address the EC's concerns with the transaction.”