ESC cheers EU decision to stop UPS takeover of rival TNT Express

THE European Shippers' Council (ESC) has voiced full support of the European Commission's decision to block the proposed EUR5.2 billion (US$6.9 billion) takeover of TNT Express by UPS, forcing the US multinational to withdraw its bid.

The ESC said it was seeking "a properly-functioning European market in which competition is encouraged" and had "expressed its concerns in relation to competition within the European express market and views UPS' decision in that competitive context".

Joost Van Doesburg, policy manager, Air Transport Council (ATC) and representative of the ESC said: "UPS' proposed takeover of TNT Express would have reduced the number of European express companies from three to only two, with DHL Express alone still able to compete with the proposed TNT-UPS combination. A few years ago, a similar reduction in the number of express companies in the United States resulted in significant price increases."

The ESC release said the European Commission consulted a large number of the ESC's members, business customers of UPS and TNT Express, before reaching its decision.

The council represents the freight transport interests (import, export and intra-continental by all modes of transport) of businesses in Europe.