WASHINGTON—United Parcel Service (UPS) Inc.’s plan to take over Deutsche Post AG’s US air shipments will be reviewed in hearings next month before two congressional committees.

Executives for UPS and Deutsche Post’s DHL unit will be invited to testify before the House Judiciary Committee, said Jonathan Godfrey, a panel spokesman. The House Transportation and Infrastructure Committee said over the weekend it also plans a hearing.

The forums are a victory for lawmakers from Ohio, where cargo carrier Air Transport Services Group Inc. will lose its largest customer as DHL shifts its business to UPS. DHL’s move may result in the loss of 8,200 jobs in Air Transport’s hometown of Wilmington, Ohio, a local-government task force estimated.

“A number of concerns have been raised,” House Judiciary Chairman John Conyers, a Michigan Democrat, said in a statement in Washington. “I hope this hearing will allow all interested parties to make their case.”

UPS, the world’s largest package-delivery company, and Bonn-based Deutsche Post announced their 10-year freight accord on May 28. UPS said it expects as much as $1 billion in new annual revenue, while Deutsche Post plans to cut as many as 1,800 jobs to pare costs at money-losing DHL. Air Transport’s ABX unit now handles US flying for DHL.

Ohio lawmakers asked both panels for hearings, and their calls were echoed by Republican presidential candidate John McCain. Democrat Barack Obama has said the US Justice Department should examine the transaction for any antitrust violations. Ohio has backed the winner in 11 elections in a row.

“I have serious concerns,” House transportation chairman James Oberstar, a Minnesota Democrat, said in his statement. “This would lessen, or even eliminate, competition between UPS and DHL in providing overnight package-delivery services.”

Norman Black, a spokesman for Atlanta-based UPS, said, “We plan to cooperate with the committees and provide any information that they request.” A call to DHL’s press office in Plantation, Florida, wasn’t returned.

Neither congressional panel has set dates for the hearings, according to committee spokesmen. Jim Berard, a spokesman for Oberstar, said he assumes UPS and DHL executives would be invited to testify though a witness list hasn’t been set.

Oberstar’s full panel will hold the hearing, while the Judiciary proceeding will be held by the Task Force on Competition Policy and Antitrust Laws. Godfrey said there would be more than one Judiciary hearing though he didn’t know how many. (Bloomberg)

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UPS-DHL accord to be reviewed in US House hearings

WASHINGTON—United Parcel Service (UPS) Inc.’s plan to take over Deutsche Post AG’s US air shipments will be reviewed in hearings next month before two congressional committees.