UPS-TNT deal stalled by European Commission's lack of clarity

THE problems within the European Union over regulation of competition has been highlighted by delays in the UPS acquisition of TNT Express, making it more difficult to meet the completion of the deal by the agreed February 28 deadline.

The purchase has been thwarted by the European competition regulators' "statement of objection" which is criticised for its lack of clarity.

According to the European Commissioner for Competition Policy Joaquin Alumnia the "substantial" concessions are to prevent price collusion or anti-competitive problems.

But to the market, it points to either a lack of knowledge of the express parcels business or a regulatory body unable to manage the process with efficiency, said a report from UK's Transport Intelligence.

The process has created uncertainty and acted as brake upon investment, added the report.