UPS (UPS) has announced it will withdraw its $7 billion bid for shipping company TNT due to European antitrust concerns. There is now a clear road for an acquisition by FedEx (FDX). What’s interesting is that UPS was likely trying to work out a deal for TNT’s European assets with FedEx to get the deal done. FDX may have wanted no part in that and thus, now has all options on the table for a TNT acquisition.
With UPS gone, FDX is likely the only TNT buyer around. They could buy the entire company on the cheap and integrate pieces that fit well with their existing structure. TNT may have to sell or risk dying out slowly. We’ll have to wait and see what happens for now, but expect a bid for TNT from FDX sooner rather than later.