Delhivery Receives CCI Approval For Majority Stake In Ecom Express

Delhivery, a leading logistics service provider, has received the nod from India's fair-trade regulator, the Competition Commission of India, to acquire a majority stake in Ecom Express. The deal is valued at about Rs 1,400 crore.

The proposed acquisition involves Delhivery taking control of at least 99.44% of Ecom Express Ltd.'s equity and preference shares on a fully diluted basis. Delhivery offers a comprehensive suite of logistics services, while Ecom Express specialises in logistics solutions for the Indian e-commerce sector and is currently unlisted.

Delhivery officially announced its intention to acquire Ecom Express in April, stating it had signed a definitive agreement for a cash consideration of around Rs 1,400 crore. The company's board approved the acquisition of at least 99.4% of Ecom Express's issued and paid-up share capital, on a fully diluted basis, for a purchase price not exceeding Rs 1,407 crore.

This strategic acquisition aims to significantly enhance Delhivery's operational scale, thereby strengthening its offerings to clients. Gurugram-based Ecom Express reported a turnover of Rs 2,607.3 crore in the 2023-24 fiscal year, a slight increase from Rs 2,548.1 crore in the previous year.

Acquisitions exceeding specific financial thresholds require approval from the CCI, which is responsible for preventing unfair business practices and bringing about fair competition in the market.

(With inputs from PTI)