UPS expects to complete TNT deal in early 2013

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United Parcel Service now expects its 5.16bn euro takeover of TNT Express to be completed in early 2013.

It has confirmed that the extension of the offer period for its TNT Express bid has been extended to 9th November, as the European Commission has yet to complete its examination of the deal. It indicated that it intended to extend of the offer on 22nd August.

UPS and TNT Express have also consented to a request from the European Commission to extend the review period for another ten working days to enable the Commission fully to review additional information related to the transaction.

As a result of this extension, UPS and TNT Express now anticipate completion of the offer and close of the transaction in early 2013.

UPS agreed the deal with TNT in March and expected it to be completed in the third quarter of the year.

However, in July, the European Commission decided to launch an in-depth investigation under the EU Merger Regulation.

UPS said that if and when the currently extended offer period lapses without the condition on competition clearance having been fulfilled, an exemption would be requested from the Netherlands Authority for the Financial Markets to extend the offer period again.

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