The Commission reviews major corporate mergers and acquisitions to ensure they do not hurt fair competition in the market. It has the power to block deals or to demand concessions, such as the sale of business parts, to safeguard market balance.
UPS had earmarked $5 billion in cash for the purchase of TNT. Sterne Agee analyst Jeffrey Kauffman said he expected the company to now use some of that for dividends or share buybacks. He said UPS could also pursue smaller acquisitions, especially in Asia.
Jim Corridore, equity analyst for S&P Capital IQ, said UPS can still "build a stronger network in Europe through smaller acquisitions and internal growth."
Before UPS jumped in, some analysts thought rival FedEx Corp. might make an offer for TNT, but FedEx executives said in March they had no plans to do so.
U.S. analysts don't expect FedEx to reconsider in the near-term because it's in the midst of a major restructuring of its Express air cargo service.
FedEx declined to comment. Its shares rose $1.02 to close at $98.42.
Koenig reported from Dallas. Sterling reported from Amsterdam.