TNT Express NV says that United Parcel Service Inc. has walked away from a $6.8 billion acquisition of the Dutch company after learning that European regulators would reject the deal in its current form, AP reported.

UPS had offered to buy the struggling TNT, Europe's second-largest delivery company, in May, to better compete with Europe's largest delivery company, Deutsche Post's DHL.

In October, regulators said the deal would lead to over-concentration in the sector, and UPS offered sell parts of the company's small package operations and airline assets.

But after meeting with regulators Jan. 11, UPS told TNT it saw no hope the deal would be approved and it wasn't interested in further concessions.

TNT will receive a €200 million ($265.5 million) break fee and now faces an uncertain future.