CCI approves FedEx India’s minority acquisition in Delhivery
FedEx had announced an investment of $100 million into Delhivery in July this year and the logistics unicorn has already filed for its IPO.
The Competition Commission of India (CCI) on Tuesday approvedIndia's acquisition of a minority stake in .
It has also given nod to the acquisition of certain operating assets of FedEx India and TNT India by Delhivery.
Under the proposed combination, FedEx India will acquire a minority stake in Delhivery on a fully diluted basis along with certain minority investor rights, according to a combination notice filed with the regulator.
In addition, Delhivery Pvt Ltd will acquire certain operating assets pertaining to the domestic business of FedEx Express Transportation and Supply Chain Services (India) Pvt Ltd.
Some customers and employees of FedEx India will also be transferred to Delhivery, subject to obtaining their consent.
"TNT India's role in the combination is limited to the transfer to Delhivery of certain operating leases (along with associated assets) and employees, subject to their consent," it said.
The entities also propose to enter into certain interconnected and ancillary transactions, it added.
"The proposed combination will have no impact on the competitive landscape in any potential relevant market in India, in any manner," the notice further added.
TNT India is part of the FedEx group. Delhivery and FedEx India are engaged in providing logistics solutions.
"Commission approves acquisition of a minority stake of Delhivery by FedEx India and acquisition of certain operating assets of FedEx India and TNT India by Delhivery," a tweet by the regulator said.
These developments come amidst the backdrop of Delhivery filing for an initial public offering (IPO) to raise up to Rs 7,400 crore. The IPO of Delhivery will consist of a fresh issue of shares worth Rs 5,000 crore and an offer for sale of Rs 2,460 crore from some of the existing investors.
Delhivery has been backed by SoftBank, Tiger Global, Times Internet, Carlyle Group, Steadview Capital, and Addition. It has cumulatively raised around $1.37 billion in funding.
Delhivery joins the list of Indian startups taking the public route and tapping into the investor enthusiasm for technology-led businesses.