CCI Approves Delhivery’s ₹1,407 Cr Acquisition of Ecom Express and M&M’s ₹555 Cr Stake in SML Isuzu on June 17, 2025.
Banking & Finance
On 17 June 2025, the Competition Commission of India (CCI) cleared two major acquisitions: Delhivery’s ₹1,407 crore takeover of Ecom Express and Mahindra & Mahindra’s ₹555 crore purchase of a controlling stake in SML Isuzu.
- The CCI approved Delhivery’s acquisition of a 99.4% stake in Ecom Express for ₹1,407 crore. Delhivery’s MD & CEO Sahil Barua stated that the merger enhances cost efficiency, delivery speed, and network reach, reinforcing its leadership in India’s e-commerce logistics.
- Mahindra & Mahindra (M&M) received CCI approval to acquire 58.96% of SML Isuzu for ₹555 crore, including an upcoming open offer for up to 26% additional shares. The transaction aims to double M&M’s presence in the heavy commercial vehicle segment (above 3.5 tonnes).
- Following the CCI clearance, Delhivery’s share price rose roughly 1.6% on the BSE to ₹364.7, reflecting investor optimism regarding logistics consolidation. M&M shares also gained nearly 3%, driven by expectations of expanded market share and synergies.
Main Point :- (i) Under Section 31(1) of the Competition Act, 2002, CCI reviews mergers for potential anti-competitive impact. Both deals were found not to harm consumer welfare or market competition, aligning with the regulator’s pro-growth approach.
(ii) These approvals reflect ongoing consolidation in India’s logistics and automotive sectors. Delhivery aims to strengthen its logistics network and operational efficiency, while M&M reinforces its dominance in China’s and global CV markets via synergies with SML Isuzu.
(iii) Post-merger, Delhivery’s expanded footprint supports automation and asset utilisation, while M&M targets a 10–12% market share in >3.5 tonne CVs by FY 31 and upwards of 20% by FY 36. Both companies view the CCI nod as crucial for scale and competitiveness.
About CCI
Chairperson: Ravneet Kaur
Headquarters: New Delhi
____________________________
