EU regulators may seek concessions on FedEx’s TNT acquisition

Following FedEx's bid to acquire rival company TNT, the European Commission may demand concessions that would have a significant impact on the deal.

The EU’s regulatory body has been investigating the proposed acquisition to determine if FedEx would be violating antitrust rules in European markets, particularly pertaining to small parcels delivery.

If the EU serves FedEx with a formal complaint, negotiations could follow that may lead to FedEx having to sell assets. In turn, this could discourage potential buyers and investors and sour the deal.

FedEx maintain that, due to their relatively small presence in the European market, the TNT acquisition should not breach regulations. They say that their situation differs from the bid made by UPS that was rebuffed by the EU in 2013.

(Source: Wall Street Journal)