Couriers FedEx (NYSE:FDX) and TNT Express (AMS:TNT) have received unconditional approval for a merger from the European Commission, who concluded that the deal would not present any competition concerns.
The companies announced the merger back in April last year, stating that FedEx intended to buy TNT for 4.4 billion euro to expand their business in the European market. With approval from the European Commission to proceed obtained, all that remains is clearance from remaining jurisdictions including Brazil and China. FedEx said in a statement that they expected the offer to complete in the first half of 2016.
“We are extremely pleased to receive the European Commission’s unconditional approval,” said David Binks, Regional President Europe, FedEx Express. “We believe the combination of TNT Express and FedEx will provide significant value to the employees, customers and shareholders of both companies.”
Investors have reacted negatively to the news, with FedEx currently trading down 4.37 percent in after hours trading. (1100GMT). The combined company would become Europe’s second largest courier, coming in just behind Dutch DHL.