The Competition Commission of India (CCI) on Tuesday approved logistics services provider Delhivery’s proposed acquisition of a 99.4% stake in Ecom Express for a cash consideration of up to Rs 1,407 crore.“The proposed combination comprises the acquisition of at least 99.44 per cent of the equity and preference shareholding (on a fully diluted basis) of Ecom Express Ltd by Delhivery Ltd,” the regulator said in a release, as reported PTI.Confirming the approval in a post on X, the commission said: “CCI approves acquisition of at least 99.44 per cent of the equity and preference shareholding of Ecom Express Ltd by Delhivery Ltd.”The deal, first announced in April, marks a major consolidation move in India’s logistics sector. Delhivery, which offers full-spectrum logistics solutions, had then said it had “signed a definitive agreement to acquire a controlling stake in Ecom Express for a cash consideration of around Rs 1,400 crore from its shareholders.”The company’s board approved the acquisition of shares “equivalent to at least 99.4% of the issued and paid-up share capital, on a fully diluted basis, of Ecom Express Ltd for a purchase consideration not exceeding Rs 1,407 crore,” Delhivery said in its disclosure.The Gurugram-based Ecom Express is an unlisted logistics provider focused on India’s booming e-commerce industry. The company posted a revenue of Rs 2,607.3 crore in FY24, up from Rs 2,548.1 crore in FY23.Delhivery said the acquisition will help enhance its scale and strengthen its value proposition to clients in the competitive express parcel and e-commerce logistics segments.M&A transactions beyond a certain size threshold require prior clearance from the CCI, which reviews deals to ensure they do not harm market competition.
