Thursday, February 4, 2016

Express Freight and Parcel Carrier Acquisition Gets a Nod from South America

Brazilian Authorities Give Services Merger the Go Ahead
Shipping News Feature
BRAZIL – EUROPE – Brazilian anti-competition authority Conselho Administrativo de Defesa Econômica (CADE) has given an unconditional approval for the proposed €4.4 billion acquisition of the Dutch parcel carrier TNT Express by express freight group and US rival, FedEx Corporation. David Bronczek, President and CEO, FedEx Express, said:

“We are very pleased with the unconditional approval from the Brazilian regulatory authority. Once the acquisition is closed, we look forward to the opportunities it will bring to our employees, customers and shareholders in Latin America and across the globe.”

On January 8, 2016, FedEx and TNT Express announced that the Acceptance Period for the Offer had been extended until two weeks following the satisfaction or waiver of the Offer Condition with respect to Competition Clearances.

The Offer Condition regarding Competition Clearances relates to obtaining competition approval from the relevant antitrust authorities in the EU, Brazil, China and the US. The companies recently announced the unconditional approval from the US, Australia and the EU and Taiwan as well as South Africa. Under Brazilian law, the decision may be appealed within 15 calendar days of the official publication of the decision.

FedEx and TNT Express say they are continuing to work constructively with the regulatory authorities to obtain clearance of the transaction in the relevant jurisdictions, including China. The two parties anticipate that the deal will close in the first half of 2016.