On 29 September, 2022 the CCI approved the acquisition of 46.86% of the equity share capital in Gati Limited (‘Target’) by Allcargo Logistics Limited (‘Acquirer’).^[1]

The Acquirer is a public listed company incorporated in India, and is engaged in the provision of logistics solutions in the country. It offers specialized logistics services across various business segments via multimodal transport operations, container freight station and inland container depot operations, project and engineering solutions, and warehousing & logistics park.

Target is a public listed company incorporated in India, and is engaged in the business of express distribution, supply chain management solutions, value-added transportation solutions, e-commerce logistics and operation of fuel stations.

The CCI observed that both the Acquirer and the Target are present in the overall logistics sector in India, but the services provided by the Acquirer and Target in this sector were distinct and exclusive of each other. There is no vertical overlap between the activities of the Acquirer and the Target as the Acquirer is involved in a different business segment and no supply chain was established. Thus, there was no overlap between the activities of the Target and the Acquirer and thus, the acquisition did not cause any competition concern. Therefore, the CCI approved the acquisition under Section 31(1) of the Act.

[1] Combination Registration No. C-2022/07/956.