An unnamed third party has filed an appeal with the Conselho Administrativo de Defesa Econômica regarding the regulatory body’s approval of a tie-up between FedEx Corp. and TNT Express, according to a joint statement from the companies.
An unnamed third party has filed an appeal in Brazil regarding the regulatory approval of a FedEx Corp.’s acquisition of TNT Express, according to a joint statement from the companies.
Brazil’s Conselho Administrativo de Defesa Econômica (CADE) granted its unconditional approval of the $4.8 billion takeover earlier this month, but the companies noted at the time that parties can appeal the decision within 15 calendar days of its official publication under Brazilian law.
Although the announcement from FedEx and TNT did not specify the appealing party, signs point to FedEx archrival UPS as the culprit. Because UPS, which attempted to acquire TNT Express itself back in 2012, is classified by CADE as the only “third party” interested, it is the only competitor eligible for an appeal, according to a report from online M&A news service to CTFN.
CTFN said CADE’s agenda indicates the regulatory body met with UPS lawyers last week to discuss an appeal of its approval of the FedEx-TNT deal.
FedEx previously received approval to acquire the Netherlands-based global parcel courier from the United States Federal Trade Commission and the European Union, but still requires sign-off from regulators in China.
“FedEx and TNT Express continue to work constructively with the regulatory authorities to obtain clearance of the transaction in the relevant jurisdictions, including China, and are making timely progress,” the companies said. “FedEx and TNT Express remain confident that the offer will close in the first half of calendar year 2016 and look forward to the opportunities the combined company will deliver for customers, shareowners and employees around the world.”
A spokesperson for FedEx declined to comment on the CTFN report.
Earlier this week, TNT Express reported an operating income of 57 million euros (U.S. $63.47 million) for the fourth quarter of 2015 on revenues that grew 4.1 percent to 1.86 billion euros from the same 2014 period. For the full year, operating income reached 38 million euros on 6.91 billion euros in revenues.
This represents a sharp turnaround from fourth quarter and full year results in 2014, when TNT posted operating losses of 53 million euros and 86 million euros, respectively.
FedEx-TNT approval in Brazil appealed
