Delhivery gets CCI nod for Ecom Express acquisition
Delhivery had announced the acquisition of 99% stake in Ecom Express for Rs 1,400 crore to scale up its business in April earlier this year.
The Competetion Comission of India on Tuesday cleared logistics services provider Delhivery's proposal to acquire a majority stake in rival Ecom Express for about Rs 1,400 crore.
"The proposed combination comprises the acquisition of at least 99.44% of the equity and preference shareholding (on a fully diluted basis) of Ecom Express Ltd (Ecom) by Delhivery Ltd," the Competition Commission of India (CCI) said in a release.
Delhivery had announced the acquisition of Ecom Express for a cash consideration of about Rs 1,400 crore to scale up its business in April earlier this year.
The move was aimed at enhancing Delhivery's scale, strengthening its value proposition to clients, the company had shared in an exchange filing.
The turnover of Gurugram-based Ecom Express stood at Rs 2,607.3 crore in the 2023-24 fiscal year as against Rs 2,548.1 crore in the preceding year. The company witnessed a slowdown in its topline after its biggest client, Meesho, moved the majority of its logistics services to it in-house offering, Valmo.
According to a report by Livemint, approximately 150 mid-level and regional operations employees have voluntarily resigned. Moreover, Additionally, Ajay Chitkara, CEO, Ecom Express, along with other senior executives, are expected to exit the company following regulatory clearance.
(With additional inputs from PTI)
