Delhivery, Ecom Express seek CCI nod for their Rs 1,400-crore deal
Under the deal announced on April 5, Delhivery will acquire a controlling stake in Ecom Express for a cash consideration of Rs 1,400 crore.
Logistics firm Delhivery Ltd and Ecom Express have sought Competition Commission of India's approval for their Rs 1,400-crore deal.
Under the deal announced on April 5, Delhivery will acquire a controlling stake in Ecom Express for a cash consideration of Rs 1,400 crore.
While Delhivery is a listed integrated logistics player, Ecom Express provides logistics solutions to the Indian e-commerce industry.
According to the notice submitted to the regulator, the relevant products and geographic markets can be left open, given that the proposed deal will not lead to any change in the competitive dynamics, let alone cause any appreciable adverse effect on competition, in any market in India.
Against the backdrop of potential business overlaps, the notice has mentioned that with respect to horizontal overlaps, the markets for provision of express parcel delivery services in India, and for provision of warehousing and supply chain services in India can be considered as relevant ones.
In terms of vertical relationships, the relevant markets for provision of intralogistics automation services in India (at the upstream level), and for provision of logistics services in India (at the downstream level) can be considered, as per the notice.
Further, the notice said the proposed transaction reflects the Indian economy's continuous requirement for improvements in cost efficiency, speed and reach of logistics.
"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 beyond a certain threshold mandatorily require the approval from CCI, which keeps a tab on anti-competitive practices and promotes fair competition in the market place.