Financial Times reported that FedEx Corporation rejected United Parcel Service, Inc.'s (UPS) offer for the sale of a package of TNT Express N.V.'s assets. FedEx's rejection has made it difficult for UPS to win approval from the European Commission for its potential takeover of TNT Express. Financial Times reported that FedEx is refusing to begin unless UPS covers a bigger slice of the TNT business.

The European Commission (EC) is worried that the €5.2 billion takeover by UPS would leave only two other big players, DHL and FedEx. Several people familiar involved with the clearance told Financial Times that DPD Dynamic Parcel Distribution GmbH & Co. KG is currently the only potential buyer for the TNT assets.

The assets include TNT subsidiaries in at least 16 European Union countries including Spain. Financial Times added that Joaquin Almunia, European Union's Competition Chief is cautious about a sale to DPD as it does not have an air network and would rely on buying space in aircraft, which has raised doubts about its future commitment to compete with UPS. Reuters said that a TNT spokesman declined to comment on the FT report but said that UPS and TNT were fully committed to the deal and were working closely with EC.

Reuters added that FedEx, EC and UPS did not comment on the matter.