TNT starting to scale back after collapse of UPS deal

Parcel delivery firm TNT Express, which last month abandoned its €5.2 billion (£4.5bn) merger with UPS in the face of opposition from European regulators, is to sell its domestic operations in Brazil and China in a bid to cut costs.

The Dutch company is due to announce its new strategy on 25 March following the collapse of the UPS deal, which aimed to create a global delivery group with strong market positions across Asia, Europe, Latin America and the United States.

Interim chief executive Bernard Bot said: “There are many positive actions we can take to improve profitability.”

He was speaking as the firm narrowed its operating losses for the fourth quarter of 2012 to €71 million from €104m a year earlier. Revenues were largely unchanged at €1.9bn.