The Conselho Administrativo de Defesa Econômica initially approved the $4.8 billion acquisition of Netherlands-based TNT Express last month, but a “third party,” FedEx archrival UPS Inc., appealed the ruling.
Brazil’s Conselho Administrativo de Defesa Econômica (CADE) has upheld its unconditional approval of the acquisition of TNT Express by FedEx Corp., according to a joint statement from the companies.
CADE initially approved the $4.8 billion deal last month, but a “third party,” FedEx archrival UPS Inc., appealed the ruling under Brazilian law.
“The review process in Brazil contains an option to submit an application to the senior level of CADE to consider a more in-depth review of an initial finding,” a UPS spokesman said at the time. ”This option has been exercised as part of ensuring a fair and thorough investigation.”
Analysts have speculated the appeal amounts to sour grapes on the part of UPS, which made a failed attempt to purchase Netherlands-based TNT Express back in 2012. That deal was scuttled due to opposition from regulators in the European Union, which has already approved the FedEx-TNT tie-up.
Yesterday CADE rejected the UPS appeal, clearing the way for FedEx to close the deal on schedule, pending antitrust approval from China. Acquiring TNT would significantly strengthen the company’s parcel delivery network in Europe, where FedEx previously lacked a strong presence, and put it in a position to compete with UPS and DHL in the region.
“FedEx and TNT Express have obtained unconditional competition approval in the EU, Brazil and the United States of America and continue to work constructively with regulatory authorities to obtain clearance of the transaction in the remaining relevant jurisdictions, including China,” the companies said. “FedEx and TNT Express are making timely progress and continue to anticipate that the Offer will close in the first half of calendar year 2016.”
Brazilian regulators uphold approval of FedEx-TNT deal
