US package delivery giant United Parcel Service (UPS) said Monday it was abandoning it's 5.2-billion-euro (7-billion-dollar) bid for Dutch-based TNT Express after European competition authorities said they would likely reject the deal.
"We are extremely disappointed with the EC's position," said UPS chief executive Scott Davis in a statement released in Atlanta.
He said UPS, which is the world's biggest delivery service, had made several changes to its takeover plan in an attempt to overcome competition concerns, which included a reduction in the number of competitors in the market from four to three.
But EU anti-trust authorities warned that the takeover could result in concentration in the European market for express delivery, as a result dashing UPS's hopes to boosting its presence in Europe.
"The combined company would have been transformative for the logistics industry, bringing meaningful benefits to consumers and customers around the world, while supporting growth in Europe in particular," said Scott.
The news that UPS was dropping the bid sent shares in TNT Express down 40 per cent in early trading in Amsterdam.
UPS said it will pay TNT a termination fee of 200 million euros.
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