UPS Wants Clarification of EU Decision to Block TNT Express Deal

A UPS spokeswoman is cited in The New York Times as saying that the appeal should not be seen as “a signal of a renewed interest in the TNT Express acquisition.” Instead, the company says it is challenging the EU’s decision so that it may “ensure there’s no precedent that could impact future acquisitions.”

That is a little disingenuous. TNT Express is Europe’s second-largest delivery service, behind Germany’s DHL. The EU blocked the deal because the Europeans believed it was anti-competitive and would have raised freight rates in every EU country.

The appeal was filed with the EU General Court, and it normally takes about two years for a decision to make its way through that body. Thus the impact of the appeal — if there is any impact at all — will not be felt for a long time.

UPS shares closed at $83.54 on Friday and are inactive this morning. The stock’s 52-week range is $69.56 to $85.95.