Brussels approves merger of postal services

[TrueBlueTerrier]

http://www.ft.com/cms/s/0/a6ad592a-2e97 ... ck_check=1" onclick="window.open(this.href);return false;

The first merger of established national postal services in Europe has been given a green light by Brussels under EU competition rules, but only on condition that they divest some assets and business.

The proposed merger of the Swedish and Danish postal operators – both of which are at least partly state-owned – is also the first to be announced since EU lawmakers passed legislation requiring countries to open their postal market and get rid of remaining state monopolies, by 2011.

Analysts predict that this will trigger a wave of consolidation in the sector, which is why the proposed tie-up between Sweden’s Posten AB and Post Danmark has been closely watched.

On Tuesday, EU competition commissioner Neelie Kroes said they had raised some problems, but these had been resolved “quickly and in full” by the companies’ commitments.

“Liberalisation can move forward as before,” she said.

Under the decision, the two operators will divest assets and customer contracts covering their entire overlap in the domestic business-to-business parcel delivery services market in Denmark. This was one of the areas that triggered concerns from other operators in the region – including Itellla, the state-owend Finnish postal company and Norway’s Posten Norgen.

However, critics had also wanted the commission to put pressure on Denmark to liberalise its postal market well ahead of the 2011 deadline. But on Tuesday Brussels said its investigations showed that liberalisation there was not at risk and the proposed merger was unlikely to increase barriers to entry or expansion or impede competition in the Danish mail market.

The Swedish postal market is already fully liberalised.

[DGP1]

If TNT buy a stake in RM, will they have to dispose of their DSA business