Regulators for the European Union have approved the purchase of TNT Express (AMS:TNT) after a six-month antitrust investigation commenced. The deal will have FedEx (NYSE:FDX) purchasing the company in a deal valued at nearly $5 billion.
The proposed merger of the companies was announced in April, with FedEx hoping to expand their operations in Europe.
Approval of the acquisition has been expected since October when European regulators announced that they will not be challenging the transaction. Similar deals blocked the purchase of TNT, with the United Parcel Services Inc. being blocked from buying the company.
Regulators announced on Friday that they have concluded their antitrust investigation and found that there will still be sufficient competition in the market for rivals. The regulators also announced that both companies were not close competitors in Europe.
David Binks, regional president of FedEx’s operations in Europe, stated that the company is “extremely pleased to have been given unconditional approval.”
The deal will result in the third-largest company in Europe’s express delivery market right behind DHL and UPS. The conclusion is that European consumers will not be affected by the merger, and executive state that the merger is different than UPS’s attempt to buy the company due to FedEx’s market share being much smaller in Europe.