Latest update says that the European Union took a decision to extend its investigation for some more time on FedEx-TNT deal. Although investigation date extended, it does not affect the completion of investigation purpose. From the media source: it is declared that the European Union’s decision of extension is not expected to affect the investigation in any circumstances. European Union started its investigation into FedEx-TNT deal of 4.8 billion dollars in which FedEx to take over TNT through a bid. Yesterday, confirmation came that the competition investigation will not be extended up to January 13, but in vain; it would be completed before the extended date.
Moreover, investigation process is highly expected to complete by December 8, which was the initial deadline. It revealed from a spokesperson belonging to TNT that both companies showed their acceptance for date extension. He also said that the competition commission proposed for extension wants to make sure about their extensive review. This is the reason why they extended the date to make sure that they are not running out of the deadline soon. They were happy to agree for an extension as extended time makes the review more perfect relaxing them.
Many are in expectation that time extension asked by the commission is due to insufficiency. But it is not true. Although, the commission asked for the time extension, it is not compulsory to use complete time if it gets to a conclusion within the time period. It revealed by him that TNT is in high expectation to close the matter in the first half of the year 2016 rather than extending further. The extended time is clearly granted according to the procedure listed in the regulation of EU Merger Control with complete approval of parties, said by FedEx.
FedEx extended its hand to work constructively together with the Commission to sort out the transaction clearance from TNT. An in-depth investigation is carried out on to the deal based on concerns made like reduction in competition and hike in prices. It is started in the month of July based on requests. It was said by Commission that it had some concern about a number of European markets for small package deliveries and international express. Also, insufficient competitive constraints would be faced by merged entity from the tough players – UPS and DHL. This may lead to hike in prices for both business customers and consumers. The probe involved in the deal was a normal part of Commission’s investigation told by both TNT and FedEx. As of now, this is the information revealed by both FedEx and TNT. Further information can be expected from them by next week. It is yet to see in the upcoming news, regarding the investigation carried out on the deal and unknown facts present (if any). Extended date is 20 days away from the initial date and as well as expected completion date. It is yet to see if the deal is going to complete by the initial date or extended date.