An EU court on Tuesday annulled a decision by Brussels to cancel a proposed merger between US shipping giant UPS and Dutch rival TNT, citing procedural problems. The European Commission, the European Union's powerful executive arm, in 2013 torpedoed the 5 billion euro ($5.3 billion) merger plan. The annulment is small consolation for UPS as TNT went on to be bought out by US shipping giant FedEx in a tie up that was approved by Brussels.
"The General Court annuls, on the ground of a procedural irregularity, the decision by which the Commission refused to authorise the merger between UPS and TNT in the express small package delivery services sector," the EU's second highest court said in a statement. The European Commission was not immediately available for comment. UPS, which filed the appeal last April, praised the decision.
"UPS is pleased to see that its reasoning was upheld by the European General Court," said Gregg Svingen, global director of public relations at UPS. The decision will help "to preserve a competitive environment in Europe by clarifying the procedure and relevant criteria for merger approval," he added.
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