UPS loses € 2 billion of EU veto charges in TNT bid


Luxembourg — United Parcel Service, Inc., the world’s number one logistics company, said Wednesday that it blocked a 2013 bid against Dutch rival TNT, a record € 1.74 billion from EU antitrust regulators. Lost in court struggle for compensation claim.

UPS wins may encourage other companies to take similar actions, but EU veto rights are rare and only 10 transactions have been blocked by the EU in the last decade.

The European Commission has canceled UPS’s planned acquisition of € 5.2 billion in TNT. This was because the deal did not provide sufficient remedies to alleviate concerns that it would hurt consumers.

UPS then challenged the court decision, won the case, and sued EU executives for compensation for alleged damages as a result of the EU’s veto.

“The general court has dismissed two proceedings for damages caused by UPS and ASL Aviation Holdings,” the court said.

“UPS was unable to establish that infringement of procedural rights in the procedure to control the concentration between UPS and TNT constitutes the decisive cause of the alleged type of damage.” The official said.

The court also dismissed claims from two UPS subcontractors, ASL Aviation Holdings DA and ASL Airlines (Ireland) Ltd, which have entered into a commercial transaction with TNT after the merger of UPS and TNT was approved.

The judgment can be appealed to the EU Court of Justice, the Supreme Court of Europe, only from a legal point of view.

EU Watchdog cleared the € 4.4 billion purchase of TNT Express by FedEx Corp in 2016.

UPS claims are the largest since Schneider Electric sued the Commission for about € 1.6 billion and won the case in 2001 for blocking Legrand’s bid. However, the European Supreme Court said that only part of the attorney’s fees should be covered.

Cases are T-834 / 17 UPSv Committee and T-540 / 18 ASL Airlines Holdings and ASL Aviation v Committee.

Hu Yun Qi

Reuters

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