Aussie rules OK for FedEx takeover of TNT
26 / 11 / 2015
The Australian Competition and Consumer Commission (ACCC) will not oppose FedEx’s proposed $4.8bn acquisition of TNT Express.
ACCC chairman Rod Sims said that the commmission had sought information and views from a range of interested parties including online retailers and suppliers of express services, adding: “Customers did not raise significant competition concerns with the ACCC”.
Sims stated: “Based on market inquiries and information provided by the merger parties, the ACCC determined that the proposed acquisition is unlikely to result in increased prices or reduced service levels.
“The merged entity will continue to face significant competition, including from other international rivals with significant global delivery infrastructure and networks. The merged entity will also face a credible threat of new entry and expansion by rivals.”
He continued: “Customers of express services face low costs to switch suppliers. If the merged entity attempted to increase prices, most customers indicated they could move to other suppliers, most notably DHL or UPS.”
The ACCC consulted other international competition regulators in the course of its review, including the European Commission and the New Zealand Commerce Commission, which recently approved the proposed acquisition.
TNT’s takeover by US package and logistics giant FedEx is due to clear next year. Other regulators around the world are expected to approve the deal. As part of that regulatory hurdle-clearing, TNT said that it would sell off its freighter aircraft assets.