UPS loses $2bn lawsuit against EU for veto on TNT offer
Logistics giant UPS has lost a $2bn lawsuit against EU regulator after the bloc rejected its takeover proposal of Dutch rival TNT.
The EU Commission had in 2013 stopped the $5.9bn acquisition on the grounds that UPS didn’t offer enough reassurances to claims that the merger would hinder consumer’s choice.
The group then decided to take the decision to court, suing EU regulators claiming compensation because the veto had resulted in harm to the company.
“The General Court dismisses two actions for damages brought by UPS and ASL Aviation Holdings,” read court statements. “UPS failed to establish that the infringements of its procedural rights in the procedure for the control of the concentration between itself and TNT constituted the determining cause of the types of damage alleged.”
Judges also ruled against compensation claims brought forward by two UPS subcontractors, ASL Aviation Holdings DA and ASL Airlines, who had set up deals with TNT, pending the merger’s approval.
The General Court’s verdict could still be overturned if UPS was to appeal to the European Court of Justice, the EU top court.