The acquisition is being carried out through its European subsidiary Allcargo Belgium, which is operating as ECU Worldwide
Mumbai: Allcargo Logistics, the largest integrated player in the private sector, has picked up a 75 per cent stake in the European rival Fair Trade for 12 million euros, valuing the German company at 16 million euros.
The city-based company in a statement said the acquisition is being carried out through its European subsidiary Allcargo Belgium, which is operating as ECU Worldwide.
The existing owner will retain the balance 25 per cent stake in the company, it added without offering a value of the deal, which has been approved by the Bundeskartellamt, the German competition authority.
However, a company source told PTI that Allcargo has paid 12 million euros for the controlling stake, valuing the German firm at 16 million euros.
The acquisition, pending regulatory approvals, will expand and strengthen the service network of ECU Worldwide in Europe in general and the largest EU economy Germany in particular.
Allcargo bought 65 per cent of this Belgian company also known as Nordicon in July 2021 for around USD 28 million.
ECU’s global network spans 180 countries with over 2,400 servings and 40,000 port pairs with the provision of door-to-door service in over 50 key global markets.
Fair Trade is a major player in the cargo consolidation segment in Germany, handling cargo movement across the Europe-Asia, Europe-Latin America, and Europe-North America routes.
The combined strength of ECU Worldwide’s operations in Hamburg and Fair Trade’s operations in Bremen will lead to an increase in Allcargo’s service offerings as well as a wider footprint in Germany, the company said, adding the acquisition will enable ECU Worldwide to forge a long-term relationship with Fair Trade’s current shareholders, which will in turn further augment ECU’s market position.
Shashi Kiran Shetty, the founder and chairman of the Allcargo Group, expects this acquisition to result in synergies in form of better capacity utilisation, improved efficiencies and better turnaround time.
The acquisition is part of the group’s strategic expansion plans, as this deal not only consolidates ECU’s service network and global reach but also cements our presence in Germany, Shetty added.
While Allcargo is a global leader in multimodal logistics solutions with a presence in over 180 countries and its European subsidiary ECU Worldwide is a leader in ocean freight consolidation worldwide. Allcargo is also the domestic market leader in the container freight station business and a leading player in express logistics through its subsidiary Gati, besides having a presence in contract logistics and other businesses.