The European Union (EU) competition watchdog announced on Wednesday it had given the green light to France’s La Poste SA and Swiss Post International AG to create an international mail delivery services joint venture on condition that the latter will sell its French business.
The European Commission (EC) voiced worries that the French postal operator may bolster its dominance on the domestic market, but approved the transaction after La Poste’s JV partner offered to sell Swiss Post International France to a third party.
This move will retain the competitive dynamics in France’s international business mail market, providing clients with more choice and affordable services, according to EC’s vice president in charge of competition policy Joaquín Almunia.
Following the sale of Swiss Post’s French unit, the formation of the JV will not harm effective competition in the European economic area (EEA) or a significant part of it, the regulator concluded. It has been assessing the planned transaction since May this year.
The equally-owned joint entity will be responsible for the two firm’s current activities in the field of international mail delivery services, except for their domestic inbound and outbound mail operations. The two companies announced their intentions to establish a JV in December last year.