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Brussels, 13 December 2004

Mergers: Commission approves acquisition of Menlo Worldwide Forwarding by United Parcel Service

The European Commission has approved under the EU Merger Regulation the proposed acquisition of the US-based freight forwarding company Menlo Worldwide Forwarding Inc. (MWF) by the US-based worldwide package delivery company United Parcel Service Inc (UPS). MWF is active only in the freight forwarding sector and although UPS is, to a limited extent, also active in this market, the Commission has concluded that the transaction would not significantly impede effective competition within the EU’s Single Market.

UPS’s main activity is in the sector of worldwide package delivery, it also provides worldwide air and ground cargo transportation services, air freight, ocean freight, brokerage services and complex supply chain services (including freight forwarding). UPS will acquire only the freight forwarding business of CNF Inc, a US-based company active in global supply chain services, which will be transferred to its subsidiary Menlo Worldwide Forwarding Inc. (MWF). MWF will in turn transfer all of its non-freight forwarding business to CNF Inc.

Freight forwarding can be defined as the organisation of the transportation of items on behalf of customers according to their needs. MWF is active in land, air and sea freight forwarding but most of MWF’s revenue in Europe is generated by international air freight forwarding.

UPS has limited activities in this sector in Europe. However, the Commission examined the extent of the overlap of activities and concluded that the proposed concentration will not result in any competition concerns.

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