EU antitrust regulator raises concerns over UPS-TNT merger project

EUROPE's anti-trust regulator has expressed concern at the US$6.85 billion take over of Dutch parcel firm TNT Express by UPS for fear it will corner the market.

The European Commission (EC) has raised objections to the deal because of increased concentration in an already concentrated market. However, the EC Commissioner Joaquin Alumnia emphasised the usefulness of consolidation to promote efficiency and create strength in two different countries with no overlap.

"Nothing can boost a sustainable growth pattern more than turning the single market into a reality for innovative entrepreneurs, efficient businesses, and 500 million consumers," said Mr Almunia, according to the UK's Transport Intelligence.

Mr Alumnia cited the example of a problematic deal which could see four competitors in the national mobile phone market in Austria down to three with a possible US$1.6 billion merger between Hutchison's Austrian telecoms and Orange Austria.

The question is whether the bid from the largest parcel courier of UPS with TNT Express would take up too much of the pan-European network where it too will reduce from four down to three firms.

Outside of the force of these companies on an international scale, Mr Alumnia's focus is on the combined force of UPS/TNT on international routes within Europe.