Hurdles remain for UPS on TNT deal UPS is making progress in its quest to win EU approval for its €5.2bn takeover of TNT Express but still faces a big challenge in convincing Brussels that it has a credible buyer for a swath of assets across eastern Europe. The US delivery group recently made headway in narrowing the European Commission's strong antitrust concerns and reduced the number of problem countries from 29 to about 15, said people involved with the process. But even after reluctantly offering to sell some or all TNT assets in these problematic countries, it faces a fight to convince the commission that the buyer will be strong enough to maintain competition levels. These potential hitches threaten to leave the US delivery group with a short timeframe to sell-up and a narrow field of buyers - raising the prospect for UPS of having to offer the assets at fire sale prices to FedEx, its arch US rival. UPS is actively courting other delivery groups, such as France's DPD. In its submission it proposed to start the formal sale process only after it wins a regulatory green light from Brussels, said people familiar with the offer. But the commission is indicating to UPS that the purchaser's capabilities will be critical to its decision. This would depend on the buyer taking over a viable business with ownership or access to an air network, which the commission sees as essential for the express delivery market. The takeover reduces the number of global "integrators" - combining ground and air transport - from four to three in the express delivery field. The commission's investigation, however, found FedEx's network to be patchy, meaning that the merger would leave a harmful duopoly in many markets. DPD does not own an airline. On Tuesday, Joaquín Almunia, the EU competition chief, said he would not allow a deal leaving some European markets "only with two integrators." "We want to give way for another integrator," he said. "It still remains to be seen whether appropriate solutions will ultimately address our concerns for express-parcel deliveries in Europe," he added. UPS offered to sell entire TNT subsidiaries in 12 countries and promised some asset sales in three other states. Rivals have recently been providing feedback on the package. Most of the assets are in eastern Europe and the package excludes businesses in France, Italy, the UK, and Spain. The commission dropped its initial objections to the deal in some markets after taking account of UPS arguments on the strength of FedEx and potential efficiency benefits from the deal. UPS is promising the buyer space in its aircraft at competitive prices for the next three years. However, as a rule, the commission is cautious about such so-called "access remedies," which can be complex and hard to enforce. The simplest solution for Brussels would be a sale to FedEx, which owns its own airline. But Mr Almunia has not ruled out the option of a deal to create a new integrator if UPS can show it would not be undermined by relying on another group's air network.