Mergers: Commission approves acquisition of Lynx by UPS
European Commission - IP/05/1183 26/09/2005
Brussels, 26 September 2005
The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Lynx Express Limited (“Lynx”), a UK-based parcel delivery company, by UPS (UK Holding) Limited (“UPS UK”), the UK-based subsidiary of the US company United Parcel Service, which is active world-wide in delivery services. After examining the operation carefully, the Commission concluded that the transaction would not significantly impede effective competition in the EEA or any substantial part of it and has therefore approved the acquisition.
UPS UK provides for its customers in the United Kingdom package delivery services, including domestic and international standard and expedited parcels and documents services, as well as freight services and logistics. Lynx provides domestic and international delivery services, road and airfreight forwarding services and, to a limited extent, mail services and spare part services.
The Commission’s investigation showed that the horizontal overlaps between the activities of UPS and Lynx are limited and that the combined entity would continue to face several strong competitors with significant market shares.
The Commission also examined possible conglomerate effects. It concluded that the merger would not give rise to competition concerns as the contribution from Lynx to UPS’s network is small compared to the existing UPS network. The Commission concluded that the proposed transaction would not materially affect customers’ ability to choose between competing delivery services.