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UPS Appeals EU's Merger Ruling. TNT to focus on New Profit Plan.

UPS was trying to buy the Dutch company TNT Express for $6.6 Billion in January this year but was blocked by the European Union which was a decision that had been brewing in private and in the press for quite some time. The deal would have reduced the number of small parcel carriers in a host of member states leaving DHL as the only only non-UPS option in some areas.  The EU feared this would cause price increases.  They even mentioned FedEx not having a strong enough foothold in Europe to present a third option.

UPS has decided to challenge the EU's decision because it believes it was "factually and legally erroneous."

"We are challenging the decision in order to ensure a more accurate assessment of the EU competitive landscape and that no precedent is established by the EC that would limit international growth opportunities," Peggy Gardner a UPS spokeswoman wrote.  UPS submitted its appeal to the European Union last week.

TNT Express advised in a statement saying that the appeal by UPS isn't a reconsideration or a renewal of the previous merger offer.  Officials at TNT reiterated that they withdrew the offer in January and will continue to focus on the new profit improvement plan releases on March 25th which calls for 4,000 job cuts and $283 million in savings by 2015.  TNT has already unloaded domestic interests in Brazil and China which were part of the new plan.  TNT Express holds its annual meeting of shareholders in Amsterdam on Wednesday.

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