EU antitrust regulators blocked a 5.2-billion-euro (US$7 billion) bid by United Parcel Service Inc for TNT Express, denting the world No. 1 package delivery company's hopes of expanding its presence in Asia and Latin America.

The EU regulatory veto means UPS may now have to grow via smaller acquisitions or organically, while TNT could come under pressure to change management or revise its business strategy to deflect activist shareholders.

The European Commission yesterday said UPS had not offered adequate concessions to ensure the deal would not hurt consumers.

UPS had flagged the negative decision on January 14, saying it would withdraw its bid because of opposition from the EU regulators.

The deal would have given it access to Dutch-based TNT's stronger networks in fast-growing Asian markets and Latin America and increased its non-US revenues to 36 percent of total sales from 26 percent.

The European Commission said the proposed merger would have reduced competition in 15 EU countries.

"(The deal) would have drastically reduced choice between providers and probably led to price increases," EU Competition Commissioner Joaquin Almunia said in a statement.

TNT is the leading postal delivery company in Europe, with an 18 percent market share. UPS has 10 percent and Deutsche Post's DHL unit has 15 percent.