The logistics firm of the LTD and ECOM Express have sought the approval of the India Competition Commission for its agreement of 1,400 million rupees. According to the agreement announced on April 5, Delhivery will acquire a control participation in ECOM Express for cash consideration of 1,400 million rupees.
While Delhivalery is an integrated logistics player from the list, ECOM Express provides logistics solutions to the Indian electronic commerce industry.
According to the notice presented to the regulator, relevant products and geographical markets can be left open, given that the proposed agreement will not lead to any change in competitive dynamics, much less any appreciable adhyic effect on competition, in any market in any market.
In the context of possible commercial overlays, the notice has mentioned that with respect to horizontal overlays, markets for the provision of express packages delivery services in India, and for the provision of storage services and supply chain in India can be relevant.
In terms of vertical relations, the relevant markets for the provision of intralogistic automation services in India (at the top level), and for the provision of logistics services in India (at the downstream level) can be considered, according to the notification.
In addition, the notice said that the proposal transaction reflects the continuous requirement of the Indian economy of improvements in the profitability, speed and scope of logistics.
“The proposed transaction will allow the parties to better serve their customers, through continuous investments in infrastructure, technology, network and people,” he added. The mergers and acquisitions beyond a certain threshold required the approval of CCI, which maintains a tab in anti -competitive practices and promotes fair competition in the market.