A PYMNTS Company

EU: ECJ annuls UPS-TNT bid veto

 |  January 16, 2019

Europe’s top court opened the way to a US$2 billion damages claim by US delivery company UPS on Wednesday, January 16, by annulling a 2013 decision to stop it from buying Dutch firm TNT Express.

The European Court of Justice (ECJ) stated the ruling followed a procedural error by the European Commission in its veto, which paved the way for FedEx to acquire TNT Express for €4.4 billion (US$5 billion) in 2016, a deal it approved.

UPS, which has announced it is seeking €1.74 billion (US$1.98 billion) from the European Commission, stated it was pleased the ECJ agreed that the company had been given a fair hearing.

“The judgment in UPS’s favor makes a number of points preserving a competitive environment in Europe by clarifying the procedure and relevant criteria for merger approval,” it stated.

The Commission had rejected UPS’s planned €5.2 billion (US$5.9 billion) acquisition of TNT, claiming it had not offered enough concessions to allay concerns that the deal would hurt consumers.

The ECJ stated the Commission had infringed UPS’s rights of defense by using a different econometric model in its analysis than that used in its exchange of views and arguments with UPS.

Wednesday’s ruling follows that of the General Court of the European Union, the EU’s second highest court, in 2017. The Commission had appealed against that ruling.

Full Content: Reuters

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.