UPS on Wednesday said it would give more time to finalize its $6.28 billion deal to acquire rival TNT Express because European Union competition authorities have not finished their review of antitrust issues.
The Atlanta-based parcel carrier will extend its cash offer until Nov. 9. The original deadline was Aug. 31. Formal documents to extend the closing will be filed with regulators on Sept. 5.
TNT shareholders who already have tendered their shares may withdraw them during the extra period if they choose.
UPS and TNT said they are working closely to fulfill all the offer conditions.
If approved, the deal would create a $60 billion express delivery giant and give UPS greater access to the European market, which has been difficult to penetrate because of the home advantage of TNT and Deutsche Post's DHL.
UPS is a fully integrated logistics provider and the tie up gives TNT customers easier access to the North American market as well as the company's freight transportation and logistics services around the world.
The transaction cost for UPS has fallen from $6.7 billion, when UPS and TNT first agreed in March to link up, to the current level because the value of the euro has fallen relative to the dollar. The acquisition is being paid for in euros. - Eric Kulisch