World’s biggest package-delivery company, United Parcel Service Inc. (UPS) is planning to scrap its plans to acquire TNT Express NV following the negative response from the European Union regulators.

UPS had announced a $6.9 billion or 5.16 billion-euro bid for TNT Express but the deal ran into troubles after the regulators in Europe expressed reservations on the deal. Following its decision to scrap the deal, USP will pay a termination fee of 200 million euro to the Netherlands based delivery company.

The deal was cancelled after the European Commission said in a formal issue that it has not accepted the proposed combination of the two companies. The acquisition would have been the biggest for UPS in its history of more than a century.

UPS Chief Executive Officer Scott Davis said, “We are extremely disappointed with the EC’s position. The combined company would have been transformative for the logistics industry.”

The Hoofddorp, Netherlands-based company said in a statement that TNT regrets the situation as it believed that the merger was feasible and beneficial for all the stakeholders. TNT Express said that the deal will be formally terminated after the company receives the prohibition decision.

The shares of TNT fell 4.15 euro to 4.10 euro and were trading about 49 percent lower at the time of reporting this morning.