NEW YORK (Reuters) – United Parcel Service, Inc (UPS.N ) and its Dutch merger partner TNT Express NV (TNTE.AS ) said on Friday they would take a couple of weeks to reply to European Commission objections to their 5.2 billion euro ($6.8 billion) deal.
UPS and TNT would have to offer concessions to secure regulatory approval for the deal, the European Union’s antitrust chief said on Thursday.
The companies said competition in Europe is significant, with multiple rivals offering similar services, and said their merger would help improve overall European competitiveness, partly by improving e-commerce. The Commission’s statement of objections is confidential, they added.
A merged UPS and TNT would have a quarter of the European express services market, ahead of DHL Worldwide Express BV DHL.UL with 19 percent, according to analysts at Bernstein Research. The Commission is scheduled to decide on the proposed merger by January 15 next year.
UPS shares were down 1.9 percent at $72.19 in afternoon New York Trading. TNT fell 2.2 percent in Amsterdam.
(Reporting By Nick Zieminski in New York- Editing by Gerald E. McCormick)
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