US shipping company UPS has called off its 6.8bn-dollar offer for Dutch company TNT Express after learning that the European Commission (EC) may block the deal.

UPS was hoping for approval from the European regulator until both parties met on Friday.

The US company deemed that it does not have a realistic chance of obtaining European approval.

UPS has revised its proposal at least twice in order to address the Commission's concerns.

However, it is no longer willing to move ahead with the deal under terms other than those it has already presented.

"We are extremely disappointed with the EC's position," said UPS Chief Executive Scott Davis.

"We proposed significant and tangible remedies designed to address the EC's concerns with the transaction."

TNT Express expressed its own regret over the failed deal:

"TNT Express regrets this situation, having believed the merger was feasible and beneficial for all stakeholders," the firm said. "UPS has confirmed to TNT Express payment of the agreed €200m termination fee."

Keper Capital Markets analyst Andre Mulder told Bloomberg that the concessions demanded by the Commission were too great and, in any case, TNT can survive on its own.

Investors of TNT expressed their disappointment on Monday morning with shares falling 44% to €4.56.

SC

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