EU to object to UPS bid for TNT-FT

LONDON, Oct 10 (Reuters) - UPS will be served with a formal European Union complaint as early as next week, outlining serious doubts about its proposed 5.2 billion euros ($6.7 billion) takeover of Dutch rival TNT Express , the Financial Times reported.

The European Commission, the EU's antitrust regulator, was close to finalising its investigation and will issue a "statement of objections" about the tie-up, the FT said on Wednesday, citing people involved in the process.

The EU's competition commissioner Joaquin Almunia in July launched an investigation into the deal centered on concerns about the combined company's large market share.

Potential competition issues in the small package delivery sector could arise, particularly among international express services in some European Union countries where the combined company would have very high market shares.

The FT report said investigators have told UPS, the world's No. 1 package delivery company, that the objections will be delivered unless it offers divestments or commitments to eliminate the antitrust concerns.

($1 = 0.7754 euros)

(Reporting by Stephen Mangan; Editing by Richard Pullin)

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Keywords: TNT UPS/EU