UPS and TNT Express have responded to European Commission concerns over the effect on competition of their proposed merger with a list of “remedies” to obtain clearance.
These remedies include the sale of business activities and assets in combination with granting access to air capabilities. Eligible buyers of these activities will have to ensure the long-term viability of the divested activities and continuity of customer service.
The offer of remedies does not change the terms and conditions of the offer by UPS for TNT Express.
However, the two companies said no further details of the confidential discussions or proposed remedies will be revealed at this stage. “The discussions are ongoing, which means that the offered remedies may be subject to change.”
As part of the approval process, the EC will market-test the remedies on a confidential basis.
The timing of the remedies submission extends the EC’s review period by 15 business days to 5 February 2013.