UPS modifies TNT Express bid to get EU approval

US delivery giant United Parcel Service (UPS) said on Friday it had amended its multi-billion-euro bid for Dutch firm TNT Express to meet EU conditions and close the deal by next year. It added however that the revised bid "does not change the terms and conditions of the offer by UPS for TNT Express." A statement said: "UPS and TNT announce that in line with Dutch disclosure requirements, remedies have been submitted to obtain competition clearance from the European Commission for the acquisition." It added: "The proposed remedies aim to address the EC's concerns regarding the competitive effects of the intended merger on the international express small package market in Europe." In June, UPS launched a 5.16-billion-euro ($6.71 billion) takeover bid for TNT Express, but European Commission competition authorities announced a month later they would investigate how the deal could affect the European market. At the time, the EC said it was worried that the proposed merger would reduce the number of so-called integrators from four to three and lead to a highly concentrated market for domestic and international express delivery services. UPS and TNT Express are major players in the sector for delivery of small packages and are two of four firms with a comprehensive air and road delivery network on the continent. Others present in Europe are DHL, owned by Deutsche Post, and FedEx, a US-based company. The deal is expected to put UPS ahead of its two competitors as it would strengthen its position in Europe and globally. UPS and TNT Express said on Friday that the proposed adjustments "comprised the sale of business activities and assets in combination with granting access to air capabilities" but declined to give further details. "UPS and TNT Express continue to be fully committed to the merger and are working closely with the EC to gain competitive clearance allowing the completion of the transaction in early 2013," it said. "As part of the approval process, the EC will market-test the remedies on a confidential basis," it added. TNT Express is a global player operating in more than 200 countries and maintains a leading role in the road freight network in Europe. UPS is the world's biggest package-shipping group, with annual revenues last year of $53.1 billion and 400,000 employees.