A competition official in the European Commission said in a speech
Tuesday his agency is reviewing the planned merger of UPS and TNT to ensure there will be sufficient competition after a combination.
UPS said earlier this month
it hopes to compete the deal early next year.
Joaquín Almunia, vice president of the European Commission responsible for competition policy, said during a speech in Nicosia, Cyprus, there is a "need to keep an eye on deals that would increase concentration in already concentrated markets."
The pending merger between UPS and TNT "would reduce from four to three the number of companies that control pan-European parcel-transport networks. An important issue in our analysis is whether the company that resulted from the merger would be challenged enough by the other two competitors DHL and FedEx," Almunia said.
"These companies offer a service that has a broad impact on our economy, especially for cross-border trade, so it is important that customers continue to have access to these services at competitive conditions," he added. - Chris Dupin