Brussels objects to UPS and TNT merger The European Commission has officially objected to the merger deal between UPS and TNT Express, throwing up a roadblock to the American delivery company's €5.2bn offer to acquire its smaller Dutch rival, the companies said Friday evening. The EC's statement of objections had been widely expected since the summer, when Joaquín Almunia, the commissioner for competition, announced the merger would be subjected to an extra stage of review over concerns it would hurt competition. UPS and TNT Express are two of four so-called delivery "integrators" in the world, with air and land networks offering a wide range of services, and the EC contends their merger would leave customers in some parts of Europe with too little choice. The details of the statement of objections have not yet been made public, but lack of competition on routes between Europe's southern periphery and other peripheral areas is thought to be one concern. The management of TNT Express accepted UPS's offer of €9.50 per share in March, but its shares have since fallen to €7.88 on fears the deal will not go through. UPS and TNT Express issued a joint press release calling the statement of objections "a normal step" in the EC's review process which does not predetermine the outcome. The companies contend that many smaller players in the delivery industry provide ample competition, and that the merger would actually enhance competition. "The combined company will help create a more efficient logistics market, thereby improving the competitiveness of Europe and the solutions offered to businesses and consumers," the companies said. The EC has given no indication of what remedies it might demand to allow the acquisition to go through. Should the commission demand either company divest some assets in order to increase competition, analysts say, the only likely buyer would be the American delivery company Federal Express. UPS says it remains committed to the acquisition, which fulfils its ambition to gain a stronger foothold in Europe. But an EC demand for remedies that leaves the merger with no business rationale could torpedo the deal. Besides any potential remedies, TNT Express must sell its airline before the settlement date of the merger, as EU aviation rules do not allow an American company such as UPS to own a European-based carrier.