A UPS takeover of TNT raises serious competition concerns and substantial remedies are needed, according to Joaquín Almunia, vice president of the European Commission responsible for competition policy.
The revelation came at a conference on competition policy in Italy on Friday, where Almunia was reviewing the past evolution of EU policy and future prospects.
“We are also reviewing Hutchison’s takeover of Orange in the Austrian mobile telephony market and the merger between UPS and TNT. Our preliminary view is that serious competition concerns would arise in both cases, and substantial remedies are needed,” he told delegates.
UPS agreed the 5.16bn euro 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.
The offer period has now been extended until 28 February 2013 with the approval of the Netherlands Authority for the Financial Markets.