Agencies Friday announced that its wholly owned subsidiary ECU Worldwide, a multi-modal logistics major, has acquired the business of Swedish logistics company Nordicon Group.
A senior executive said the company has dropped its plans to bid for Container Corp of India.
ECU Worldwide will float a joint venture company wherein it will own 65% while Nordicon will own the rest. The company has valued Nordicon at about $44 million, said Ravi Jakhar, chief strategy officer at Allcargo.
“With this strategic investment, ECU Worldwide will now be a market leader with anear 40% market share of the less-than-container-load (LCL) business in the Nordic region,” said a statement.
This agreement expands ECU Worldwide’s service network and global reach further, adding new geography and a specialized rail freight consolidation service to expand further across Europe.
Shashi Kiran Shetty, Chairman, Allcargo Logistics, ECU Worldwide, and Gati Ltd., said, “The partnership with Nordicon is in line with our vision of consolidating our market leadership and working with entrepreneurial teams to expand into new territories who share our vision for digital innovation for the logistics sector,” said Shashi Kiran Shetty, chairman, Allcargo.
This is the 13th major investment for the company, which has interests in global freight forwarding, container freight stations, third-party logistics and warehouses. Most recently, it entered express logistics by acquiring a majority stake in Gati.
In a recent interview, Shetty had said Allcargo was planning to bid for Concor and was in advanced discussions with a foreign partner for the bid. He had called Concor a natural fir to the Allcargo business. The government is planning to sell 30% in the company.
On Friday Jakhar said those plans have been dropped and Allcargo will continue to strengthen its existing businesses.
A senior executive said the company has dropped its plans to bid for Container Corp of India.
ECU Worldwide will float a joint venture company wherein it will own 65% while Nordicon will own the rest. The company has valued Nordicon at about $44 million, said Ravi Jakhar, chief strategy officer at Allcargo.
“With this strategic investment, ECU Worldwide will now be a market leader with anear 40% market share of the less-than-container-load (LCL) business in the Nordic region,” said a statement.
This agreement expands ECU Worldwide’s service network and global reach further, adding new geography and a specialized rail freight consolidation service to expand further across Europe.
Shashi Kiran Shetty, Chairman, Allcargo Logistics, ECU Worldwide, and Gati Ltd., said, “The partnership with Nordicon is in line with our vision of consolidating our market leadership and working with entrepreneurial teams to expand into new territories who share our vision for digital innovation for the logistics sector,” said Shashi Kiran Shetty, chairman, Allcargo.
This is the 13th major investment for the company, which has interests in global freight forwarding, container freight stations, third-party logistics and warehouses. Most recently, it entered express logistics by acquiring a majority stake in Gati.
In a recent interview, Shetty had said Allcargo was planning to bid for Concor and was in advanced discussions with a foreign partner for the bid. He had called Concor a natural fir to the Allcargo business. The government is planning to sell 30% in the company.
On Friday Jakhar said those plans have been dropped and Allcargo will continue to strengthen its existing businesses.
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