EC TO PROBE ORIGIN OF DEUTSCHE POST TAKEOVER FUNDS

EC TO PROBE ORIGIN OF DEUTSCHE POST TAKEOVER FUNDS

    Karel Van Miert, the competition commissioner of the European Commission, said that the EC intends to probe the origin of funds used by Deutsche Post to acquire Nedlloyd’s land transport activities.
    Although the EC has approved the acquisition, the Brussels competition regulator said that it would address concerns raised by competitors. Competitors of Deutsche Post allege that the German group "has access to funds, which have not been earned on the market," the EC said.
    They fear that these funds "enable Deutsche Post to finance its acquisitions and – unlike its private competitors – to operate on the market without due regard to adequate returns, thus creating a distortion in competition."
    Van Miert announced EC’s intention to look at the origins of the funds for the acquisition and possible distortions of competition under the European Union’s rules on state aids and public enterprises.