EU set to deal UPS blow, while Fedex looks for $1.7bn in cuts

© Khunaspix Dreamstime.

The quick fix UPS had hoped for in its takeover of TNT Express has not been forthcoming. The EU Commission has doubts about the merger, and is expected to issue a “statement of objections” next week. UPS will need to offer more concessions to get the deal approved, according to this FT article. (As the FT is behind a pay wall, you will need to go via CNN, and click on the ‘EU set to deal UPS blow over TNT’ link, under press releases.)

Meanwhile, Fedex believes that modal shift is permanent rather than cyclical – and so will attempt to boost profit by $1.7 billion through cost cutting. Fedex Express and Fedex Services will see the toughest cuts, said Fred Smith, while several thousand employees are expected to take a voluntary buyout.