A leading logistics company, Allcargo Logistics, picked up a 75 percent stake in the European rival Fair Trade GmbH for 12 million euros. The German company Gesellschaft mit beschränkter Haftung (GmbH) is valued at 16 million euros.
The Mumbai-based company said in the statement that ━ “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 of a 25 percent stake in the company, the company added without offering the value of the deal, approved by Bundeskartellent, the German competition authority.
According to the sources, the acquisition will expand and strengthen the service network of ECU Worldwide in Europe in general and the largest EU economy in Germany in particular.
Fair Trade is the leading name in the cargo consolidation segment in Germany, handling cargo movement across the Europe-Asia, Europe-Latin America, and North America routes.
The company said that the amalgamation of ECU Worldwide’s operations in Hamburg and Trade’s operations in Berman will increase Allcargo’s service offerings and a broader footprint in Germany. It also added that the acquisition would 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.
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Shashi Kiran Shetty, the founder and Chairman of the Allcargo Group, expects the acquisition to result in better capacity utilisation and improved efficiencies.
Allcargo Logistics is a global dealer in multimodal logistics solutions with a presence in over 180 countries and a European subsidiary ECU Worldwide is a global leader in ocean freight consolidation.
