An EU court has ruled that the EU wrongly blocked UPS’ attempt to acquire TNT in 2013.
UPS made a takeover bid of €5.2 billion, but the European Commission rejected the deal on the basis that it would give the company too much control over the European market, without offering sufficient concessions.
UPS challenged the EU decision at the General Court in Luxembourg. The decision was consequently annulled, on the basis that the Commission used a different econometric model in its analysis than had been used in previous arguments, therefore infringing UPS’ rights of defence.
The Commission approved a takeover bid by FedEx last year, despite objections lodged by UPS. FedEx purchased TNT for €4.4 billion.
The FedEx deal will not be reversed but UPS may now be in a position to sue for damages.
(Source: Reuters)
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