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.
Shashi Kiran Shetty, founder and chairman of Allcargo Group, expects the acquisition to generate synergies in the form of better capacity utilisation, higher efficiencies and shorter turnaround times. Shetty added that the acquisition is part of the group’s strategic expansion plan. The deal not only strengthens ECU’s service network and global presence but also strengthens our presence in Germany.
Allcargo is a global leader in intermodal logistics solutions with a presence in more than 180 countries, and its European subsidiary ECU Worldwide is a global leader in ocean freight consolidation. In addition to businesses such as contract logistics, Allcargo is the domestic market leader in the container freight terminal business and, through its subsidiary Gati, a leader in express logistics.