FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and the world’s largest express transportation company, and Delhivery is a leading logistics and supply chain services company in India. They had announced in July 2021 that FedEx Express India and Delhivery have entered into equity and commercial agreements that will utilize their combined strengths to unlock India’s international trade potential. Completion of this transaction was subject to closing conditions, including regulatory approval. TNT India is part of the FedEx group and also provides logistics services inter alia in the form of express parcel deliveries, special services, and freight services. The Competition Commission of India (CCI) on Tuesday approved FedEx India’s acquisition of minority stake in Delhivery completing the process.
Highlights of the Transaction
It has also given nod to 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 fully diluted basis along with certain minority investor rights, according to a combination notice.
In addition, Delhivery Pvt Ltd will acquire certain operating assets pertaining to 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.
As part of the agreement, FedEx Express will enter into a long-term commercial pact with SoftBank-backed Delhivery.
While FedEx Express will focus on international export and import services to and from India, Delhivery will, in addition to FedEx, sell FedEx Express international products and services in India and provide pick-up and delivery services across the country, as per the agreement.
About FedEx Express
FedEx Express is the world’s largest express transportation company, providing fast and reliable delivery to more than 220 countries and territories. FedEx Express uses a global air and-ground network to speed delivery of time-sensitive shipments, by a definite time and date with a money-back guarantee
About Delhivery
Delhivery is a leading logistics and supply chain services company in India. With its nationwide network covering over 18,700 pin codes, the company provides a full suite of logistics services such as express parcel transportation, LTL and FTL freight, reverse logistics, cross-border, B2B & B2C warehousing, End-to-end supply chain services, and technology services. Delhivery has successfully fulfilled over 1 billion shipments since inception and today works with over 15,000 customers, including large & small e-commerce participants, SMEs, and other enterprises & brands. For more information about Delhivery, please visit www.delhivery.com.
image: FedEX
