By Gabriele Steinhauser
BRUSSELS--The European Commission on Friday opened an in-depth
investigation into FedEx Corp.'s EUR4.4 billion ($4.8 billion) deal
to buy TNT Express NV, saying it was concerned about the merged
company's dominance in the international delivery of small packages
in some European markets.
The commission, the European Union's antitrust watchdog, said
the two remaining international delivery companies, United Parcel
Service Inc. and DHL Worldwide Express Inc., may not provide
sufficient competition to the merged company.
"This could lead to higher prices for business customers and
consumers," the commission said. The two companies announced the
deal in April.
The commission now has until Dec. 8 to investigate the proposed
acquisition and to decide whether to approve the deal or ask the
companies for concessions to ease its concerns. If it fails to
reach an agreement on how to bring the acquisition in line with EU
competition rules, the commission can also decide to block the
merger.
In 2013, the commission quashed an attempt by UPS to buy TNT for
around $7 billion.
EU Competition Commissioner Margrethe Vestager said affordable
and reliable delivery of small packages was important for consumers
and many businesses, especially for online shopping. "The
commission must therefore make sure that FedEx's takeover of TNT
would not impede effective competition and would not lead to higher
prices for consumers, " she said.
Write to Gabriele Steinhauser at
gabriele.steinhauser@wsj.com
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