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The Competition Commission of India (CCI) on Tuesday approved Delhivery’s proposal to acquire a controlling stake in Ecom Express for a cash outlay of approximately Rs 1,400 crore. According to a statement issued by the regulator, Delhivery is set to acquire no less than 99.44 per cent of Ecom Express’s equity and preference shares on a fully diluted basis.

"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 (Ecom) by Delhivery Ltd," the commission stated in an official release.

Delhivery Expands Its Logistics Footprint

Delhivery, a publicly listed logistics services provider, currently operates a comprehensive supply chain infrastructure across India. Ecom Express, on the other hand, is a private entity that specialises in delivery solutions for the Indian e-commerce sector. This acquisition, once completed, will significantly expand Delhivery’s reach and operational capabilities.

In a social media post, the competition watchdog confirmed: "CCI approves 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."

Deal Aims To Strengthen Market Position

The logistics firm had announced the deal in April, stating that it had entered into a definitive agreement to acquire a controlling interest in Ecom Express. The board of Delhivery approved the transaction for a total consideration not exceeding Rs 1,407 crore.

Delhivery noted that the acquisition is intended to "enhance Delhivery's scale, thereby strengthening its value proposition to clients."

Ecom Express Financial Performance

Ecom Express, headquartered in Gurugram, reported a turnover of Rs 2,607.3 crore in FY24, slightly up from Rs 2,548.1 crore recorded in FY23. The company's consistent revenue performance underscores its strong foothold in the e-commerce logistics space.

Regulatory Oversight Ensures Fair Competition

As per Indian competition law, acquisitions crossing a certain financial threshold must be approved by the CCI to prevent any adverse impact on market competition. The regulator’s mandate includes curbing anti-competitive practices and ensuring a level playing field for all market participants.