UPS abandons $6.9 billion takeover for TNT Express
Though TNT will receive a 200 million euro (USD 265.5 million) break fee, it faces an uncertain future on its own.
The drop in share price wiped off nearly 2 billion euro from its market value. At one point, the shares had plunged by 50 per cent before recovering somewhat to be trading 42 per cent lower at euro 4.762.
UPS had offered in March to buy TNT, Europe's second-largest delivery company, to better compete with Europe's largest, Deutsche Post's DHL. But regulators said in October that the deal would hurt competition by reducing the number of companies in the sector.
In response, UPS offered to sell parts of the company's small package operations and airline assets. But after meeting with regulators January 11, UPS told TNT it saw no prospect of the deal being approved --and it wasn't interested in further concessions.
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