An EU court ruled that the European Union had wrongly blocked the American courier's takeover attempt of its Dutch peer, TNT Express. Fred Katayama reports.
Victory for UPS in an EU court. The court ruled that the European Union wrongly blocked the American courier's takeover attempt of its Dutch peer, TNT Express. The European Commission had rejected UPS' $5.5 billion bid in 2013. It had argued that the combined company would control more than 30 percent of the European market and that UPS hadn't offered enough concessions to allay concerns the deal would hurt consumers. On Tuesday, the court ruled that the Commission had infringed on UPS' rights of defense by using a different version of its econometric analysis model than in previous arguments. That earlier Commission ruling in 2013 led UPS to scrap its acquisition. But three years later, the Commission didn't object to archrival FedEx's purchase of TNT for the lesser price of $5 billion. White & Case partner James Killick said, "I don't think you can undo the two mergers. You can't rewrite history." He said UPS could now potentially sue for damages. UPS said it's pleased with the court's ruling.