The companies state that the proposed transaction will enable them to better serve their customers through continued investments in infrastructure, networks and people
Logistics major Delhivery and Ecom Express have approached the Competition Commission of India (CCI) to secure the approval for the proposed acquisition in a deal valued at around Rs 1,400 crore. The proposed acquisition will see Delhivery acquiring a controlling stake in Ecom Express entirely in cash.
In their notice submitted to the CCI, the companies stated that the proposed transaction will not change the competitive dynamics. They argued that it would not cause any appreciable adverse effect on competition in any market in the country.
The companies added that the proposed transaction will enable the parties to better serve their customers through continued investments in infrastructure, networks, and people. In the notice, the companies outlined a few potential overlaps due to the acquisition.
As far as the horizontal overlaps are concerned, the notice pointed out that at the broad level, the market for the provision of logistics services in India could overlap. The market for the provision of express delivery services, warehousing and supply chain services in the country is a potential overlap candidate at a narrow level.
Earlier, In an exchange filing, the company stated, “We wish to inform you that the board of directors of Delhivery at its meeting held today (5 April 2025), inter-alia, has considered and approved the acquisition of shares equivalent to at least 99.4 per cent of the issued and paid up share capital, on a fully diluted basis, of Ecom Express (Ecom), for a purchase consideration not exceeding Rs 1,407 crore.”
Post completion of such acquisition, Ecom will become a subsidiary of Delhivery. As far as the indicative period for completion of the acquisition is concerned, the company stated that it is expected to be completed within six months from the date of execution of SPA unless extended by the parties to the SPA and it will be an all-cash consideration.
The company also added that this acquisition is expected to foster growth within the vendor ecosystem in the country. Vendors, such as those providing fleet and automation solutions, may gain the confidence to invest in assets and research and development, ultimately benefiting the overall logistics industry in India.
