9/17/2008

After 30 years of airline deregulation, a proposed tie-up between DHL and United Parcel Service is the "most complex" deal ever and might run afoul of antitrust regulations, according to the chairman of the House Transportation Committee. While acknowledging that the deal is neither a merger nor an acquisition, Rep. James Oberstar, D-Minn., warned that UPS may be able to control pricing at DHL, resulting in price squeezing. "Competition will be reduced, prices will go up," he said. But John Mullen, CEO of DHL Express Global, disagreed. "Customers will see no difference," he said. "We will not share confidential customer information."

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