Competition Commission of India (CCI) has approved the acquisition of a minority stake in Delhivery Limited, India’s largest B2B & C2C Logistics Courier Service Provider, by FedEx Express Transportation and Supply Chain Services (India) Private Limited (FedEx India), logistics solutions in India under the American transportation giant FedEx Corp.
Key Points of the acquisition:
i.FedEx India will acquire a minority stake in Delhivery on a fully diluted basis along with certain minority investor rights.
ii.As a part of this acquisition, FedEx will invest USD 100 million in Delhivery.
iii.Some of the customers and employees of FedEx India will be transferred to Delhivery, subjected to obtaining their consent.
iv.FedEx Express will also enter into a long-term commercial pact with Delhivery.
Proposed combination:
i.CCI has also approved the acquisition of certain operating assets to the domestic business of FedEx India and TNT India Private Limited (TNT India) by Delhivery.
ii.TNT India is a part of the FedEx group that provides logistics services in the form of express parcel deliveries, special services, and freight services.
- Delhivery, FedEx India and TNT have also proposed to enter into an interconnected and ancillary transaction.
Delhivery Ltd:Â
i.Delhivery Limited is a logistics firm backed by SoftBank, Tiger Global Management, Times Internet, The Carlyle Group, Steadview Capital and Addition. It has cumulatively raised around USD 1.37 billion in funding.
- 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.
ii.The logistics startup which turned unicorn in 2019, has filed for an initial public offering (IPO) to raise to Rs 7,400 crore.
CCI approves acquisition of stake by Veolia in SUEZÂ
CCI has approved the acquisition of stakes in French-based utility company SUEZ (S.A) by Veolia Environnement S.A (Veolia), a French transnational company engaged in water management, waste management and energy services.
- SUEZ, a global expert in the water and waste sectors, is engaged in 3 business segments: Water, Recycling and Recovery, and Environmental Tech & Solutions.
CCI approves acquisition of stakes in New Suez by Meridiam, GIP, LLC, CDC & CNP
CCI has also approved the acquisition of stake in New Suez by Meridiam, Global Infrastructure Management(GIM), LLC, La Caisse des dépôts et consignations(CDC) and CNP Assurances.
- Meridiam(France) is a global player, specializing in the development, financing and long-term management of infrastructure.
- GIP is an American independent infrastructure fund manager investing in the transportation, energy, waste and water sectors.
- CDC is a French public establishment with a special legal status created by the law of 28 April 1816 and governed by Articles L. 518-2 and seq of the French Monetary and Financial Code.
- CNP, an active insurance market in Europe and Latin America, is 100% controlled by CDC.
Background:
i.SUEZ, Veolia, and the Consortium of investors composed of Meridiam, GIP, CDC, CNP has signed a Memorandum of Understanding(MoU) to create a new SUEZ.
ii.New SUEZ comprises SUEZ’ Water and Recycling & Recovery businesses in France as well as international assets and growth prospects and development capacities both internationally and in France.
About Competition Commission of India (CCI):
Chairperson– Ashok Kumar Gupta
Director General– Dr Atul Verma
Established on 14th October 2003
Headquarters– New Delhi, Delhi
