Delhivery, Ecom Express Seek CCI Nod For Rs 1,400 Crore Deal

Logistics major Delhivery Ltd and Ecom Express have approached the Competition Commission of India (CCI) for approval of their Rs 1,400 crore transaction. As part of the deal, announced on April 5, Delhivery will acquire a controlling stake in Ecom Express through a cash investment of Rs 1,400 crore.

Delhivery is a publicly listed, integrated logistics company, while Ecom Express specialises in providing end-to-end logistics solutions for India’s e-commerce sector.

According to the filing submitted to the Competition Commission of India (CCI), the relevant product and geographic markets may be left open, as the proposed transaction is not expected to alter competitive dynamics or cause any appreciable adverse effect on competition in any market within India.

While acknowledging potential business overlaps, the notice identifies two areas of horizontal overlap: the market for express parcel delivery services and the market for warehousing and supply chain services in India.

Regarding vertical relationships, the filing highlights the upstream market for intralogistics automation services and the downstream market for logistics services as potentially relevant.

Cost Efficiency In The Logistics Sector

The notice further states that the proposed acquisition aligns with India’s growing demand for greater cost efficiency, speed, and reach in the logistics sector, reflecting the broader evolution of the economy.

"The proposed transaction will enable the parties to service their customers better, through continued investments in infrastructure, technology, network and people," it added.

Mergers and acquisitions that exceed specified financial thresholds are required by law to obtain prior approval from the CCI. This regulatory body plays a critical role in overseeing market dynamics by scrutinising such transactions to prevent the emergence of monopolistic practices or undue market dominance. The CCI’s primary objective is to ensure that competition remains fair and robust, thereby safeguarding consumer interests and promoting a healthy, competitive environment within the Indian marketplace.

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