FedEx-TNT deal faces regulatory appeal in Brazil
24 / 02 / 2016
UPS has filed an appeal with the economic regulator in Brazil against FedEx’s takeover of TNT Express.
On February 2, the US parcel giant said Brazil’s Conselho Administrativo de Defesa Econômica (CADE) had unconditionally approved its intended acquisition of TNT Express.
Under Brazilian law, a decision may be appealed within 15 calendar days of the official publication of the decision.
A UPS spokesperson in Europe said: "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. This option has been exercised as part of ensuring a fair and thorough investigation."
In a joint statement, US parcels giant FedEx and Netherlands-based TNT Express said that they "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".
"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."
It is unclear whether a third party can file a similar appeal to the regulators in China.