CCI Allows Delhivery to Buy Ecom Express’ 99% Stake for ₹1,400 Cr
In a significant development, the Competition Commission of India (CCI) has approved Delhivery’s proposed acquisition of at least 99.44% of the equity and preference shareholding (on a fully diluted basis) of Ecom Express for approximately ₹1,407 crore. This acquisition marks a major milestone for Delhivery, one of India’s leading logistics and e-commerce companies, as it aims to scale up its business and expand its reach in the rapidly growing e-commerce space.
In April, Delhivery had announced the acquisition of Ecom Express, a leading logistics and express cargo services company, for a cash consideration of ₹1,407 crore. The acquisition is expected to enhance Delhivery’s capabilities in the e-commerce logistics space, particularly in the areas of express shipping and last-mile delivery.
The CCI approval is a significant regulatory clearance that Delhivery needed to complete the acquisition. The commission’s nod is a testament to the company’s commitment to building a strong and sustainable business model that benefits both customers and shareholders.
The acquisition is expected to create significant synergies for Delhivery, allowing it to leverage Ecom Express’ expertise in express shipping and last-mile delivery to expand its offerings to customers. Ecom Express has a strong presence in the Indian logistics market, with a network of over 6,500 pin codes across the country. The company has a reputation for providing fast and reliable delivery services, making it an attractive addition to Delhivery’s portfolio.
Delhivery’s acquisition of Ecom Express is part of its strategy to expand its presence in the e-commerce logistics space. The company has been rapidly expanding its operations in recent years, with a focus on building a robust network of logistics hubs and delivery centers across the country. The acquisition of Ecom Express is a significant step in this direction, allowing Delhivery to tap into Ecom’s extensive network and expertise.
The acquisition is also expected to create new job opportunities for Ecom Express’ employees, who will be integrated into Delhivery’s workforce. This is a significant development for the Indian logistics industry, which is facing a shortage of skilled workers. The acquisition is expected to enhance Delhivery’s capabilities in the e-commerce logistics space, making it a stronger and more competitive player in the market.
In conclusion, the CCI’s approval of Delhivery’s acquisition of Ecom Express’ 99% stake is a significant development in the Indian logistics and e-commerce space. The acquisition is expected to create significant synergies for Delhivery, allowing it to expand its offerings to customers and tap into Ecom Express’ expertise in express shipping and last-mile delivery. As Delhivery continues to grow and expand its operations, it is likely to play a significant role in shaping the future of the Indian logistics and e-commerce industry.
