United Parcel Service (UPS) said this morning it would withdraw its €5.2bn (£4.3bn) bid for rival TNT Express as it expects the regulator to block the takeover.
UPS said this morning that the European Commission has informed both companies that it is working on a decision to prohibit the proposed takeover.
UPS will pay Dutch peer TNT a termination fee of €200m and will withdraw the offer, once a formal decision has been made by the EC.
The collapse of the deal is a blow for TNT Express, which has struggled to turn around in a weak European market.
“We are extremely disappointed with the EC's position,” said Scott Davis, chairman and chief executive of UPS.
“We proposed significant and tangible remedies designed to address the EC's concerns with the transaction. The combined company would have been transformative for the logistics industry, bringing meaningful benefits to consumers and customers around the world, while supporting growth in Europe in particular.”
City A.M. Reporter