What UPS-TNT Merger Could Mean for Postal Service

Is United Parcel Service’s proposed $6.8 billion acquisition of TNT Express just another corporate mega-merger or could it create a large and well-heeled behemoth that could endanger postal corporations abroad, or maybe even the U.S. Postal Service?

At least in Europe, some reports said this deal would definitely make it harder for smaller rivals like Deutsche Post DHL to compete. And who knows down the road what implications this would have in this country where UPS is such a powerhouse and the USPS is in dire financial straits.

Of course, maybe this is just paranoia. But there was serious talk not all that long ago that Royal Mail, the U.K.’s postal authority, might sell a stake to what was then known as TNT NV to help close a large employee pension deficit. Some reports assert the new proposed deal might lead to de facto privatization of Royal Mail partly because it might end up replacing GLS, Royal Mail‘s European parcels delivery arm.  

Could this happen here?

With all the U.S. Postal Service’s financial woes right now and lots of anti-government ideology spewing forth from some politicians, at least some form of privatization is not beyond the realm of possibility. Indeed, some people might bring this up and believe full- or semi-privatization might be the panacea for the USPS.

Maybe the idea is far-fetched right now since there are laws like the Private Express Statutes that give the USPS a monopoly on mail delivery. And don't forget, there would be certain opposition from the public, if not the postal unions.

But maybe privatization’s not all that implausible when it comes to the USPS’s “competitive” products like package delivery. And you know what they say about the camel sticking its nose inside the tent: it never leaves and takes over.