UPS seeks more than $2B damages in EU

UNITED Parcel Service has sued European antitrust regulators for a decision they made five years ago that blocked its takeover of the Dutch delivery company TNT Express, according to a record of court proceedings published Monday.

UPS had pursued the TNT merger in the hope of gaining a larger presence in Europe and in emerging markets, but European officials rejected it because of concerns that the transaction would decrease competition and increase prices.

The General Court of the European Union annulled the decision by European Commission regulators last year, in part because the commission had used different economic models at different times to evaluate the deal. The commission, the executive arm of the European Union, has appealed that rul- ing to Europe’s highest court.

Facing a deadline to seek damages, UPS filed a claim in December seeking € 1.74 billion, or about $2.14 billion, plus interest, according to a notice published on Monday. UPS is also seeking court costs and compensation for any taxes it may have to pay on the damage amount.

“We feel strongly that the proposed acquisition would have constituted a good deal for logistics customers,” Gregg Svingen, a UPS spokesman, said on Monday.

UPS agreed to acquire TNT in a transaction valued at $6.8 billion in March 2012, but European regulators said they would block the deal because they were worried a merger would effectively leave the Continent’s shipping market with just two main players: UPS and DHL.

In hopes of allaying those concerns, UPS agreed to sell some business units and to grant rivals access to part of its airline network, but regulators were unmoved and UPS withdrew its offer in January 2013.

A shipping rival, FedEx Corp, agreed to acquire TNT in a $4.8 billion deal in 2015, completing the deal after receiving approval from European regulators the next year.