The Commerce Commission has given clearance to FedEx to acquire all the shares in TNT.
Both FedEx and TNT are global companies active in the provision of logistics, freight and small package delivery services.
Of particular focus in the commission’s consideration was the competitive effects of the merger on the supply of express international delivery services for small packages and whether sufficient competition would remain from other suppliers in that market.
Commission chairman, Dr Mark Berry said, “The commission is satisfied that the merger will not have, or would not be likely to have, the effect of substantially lessening competition in the affected markets.
“In our investigation, we found that FedEx and TNT were major suppliers of express delivery services for small packages, but strong competition would continue from DHL Express, the largest market participant, and other competitors such as UPS.”
A public version of the written reasons for the decision will be available shortly on the Clearances Register.
The merger forms part of a global merger that is currently being considered by several other competition authorities.
FedEx and TNT are two overseas-based companies that supply international air delivery services for freight and small packages to and from a number of countries, including New Zealand.
In NZ, FedEx and TNT each provide inbound and outbound international air delivery services for documents, small packages and freight.
