FedEx rejects offer from UPS to acquire TNT assets on block for competition clearance

FedEx

US delivery firm FedEx Corp (NYSE:FDX) has rejected domestic sector player United Parcel Service Inc’s (NYSE:UPS) proposal to sell it certain assets of TNT Express NV (AMS:TNTE) as UPS tries to win clearance for its acquisition of the Dutch courier, the Financial Times reported today.

FedEx would not start serious negotiations unless a deal would involve a larger share of the Dutch firm’s operations, the paper said.

UPS and TNT announced in November 2012 a proposed offload of assets amid worries voiced by the European competition body in relation to the acquisition. The assets cover units of TNT in at least 16 EU states.

In March 2012, UPS agreed to take over TNT in a transaction valuing the Dutch firm at some EUR5.16bn (USD6.77bn), which it has said it would bankroll with existing cash and new debt.

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