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FedEx, TNT Express say combination on track despite EU probe

[AMSTERDAM] Logistics companies FedEx and TNT Express said they were still on track to complete their proposed combination in the first half of 2016, despite the European Commission's announcement of an in-depth competition review of the deal earlier on Friday.

In separate statements, the companies said they would work to address the European Commission's concerns. The European Union's competition authority said FedEx's proposed 4.4 billion euro (US$4.9 billion) takeover of TNT Express could reduce competition.

"(We) are confident that the combination of both companies will increase competition and create benefits for customers,"said David Binks, FedEx's president for Europe.

The deal is also being reviewed by Dutch, Chinese and Brazilian authorities. TNT Express said it would continue with its own turnaround strategy while the approval process was in train.

REUTERS