Allcargo buys 65% stake in Swedish logistics company
MUMBAI: Allcargo Logistics on Friday said it has acquired a 65% stake in Nordicon Group, a market leader in LCL (less-than-container-load) and rail consolidation segment in the Nordics region, for an undisclosed amount. The acquisition is being executed through Allcargo Belgium, a wholly-owned subsidiary of the country’s largest integrated logistics solutions provider in the private sector. This is the third major acquisition of Allcargo since it bought ECU Worldwide in 2003—first, a 33% take and then increased it to 49.9% in 2006. And in December 2019, it bought Gati, one of the express logistics leaders in the country, for ₹416 crore. Our subsidiary ECU Worldwide has signed a definitive joint venture agreement with the Nordicon Group of Sweden. While we will hold a 65% stake in the company, the present owners of Nordicon will continue to own the balance 35%, Allcargo said in a statement.
With this strategic deal, ECU Worldwide will now control nearly 40% of the LCL market in the Nordic region, it added.
Nordicon is the leading freight consolidation company in the Nordic region with offices in Sweden, Norway, Finland, and Denmark. From its own warehouse in Gothenburg in Sweden as well as local terminals in each country, it consolidates freight to more than 500 export destinations and from over 300 import locations around the world. The deal expands ECU Worldwide’s service network and global reach further, adding new geography and a specialised rail freight consolidation service to expand further across Europe. It will also help better serve those customers looking for flexible and time-bound logistics solutions in the Nordic region.
Allcargo Logistics Group chairman Shashi Kiran Shetty said the Nordicon deal is in line with our vision of consolidating market leadership and expanding into new territories.