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FedEx Corp (FDX) allowed to buy minority stake in Delhivery

By Munikoti Rochan

10:10, 24 November 2021

Logistis firm Delhivery courier service delivering a parcel in India
CCI allows FedEx Corp to acquire minority stake in logistics firm – Photo: Shutterstock

India’s antitrust regulator will allow US conglomerate FedEx Corp (FDX) to purchase a minority stake in domestic logistics startup Delhivery.

The Competition Commission of India (CCI), in a 23 November statement, said the parties will execute certain interconnected and ancillary transactions.

The cross-border deal will see the $65.8bn (€58.7bn) American group’s subsidiary, FedEx Express’s Indian arm buy a minority stake in Delhivery. The startup will acquire some local operating assets of FedEx Express, and of the group’s courier company TNT.

Stock market floatation

Earlier this month, Softbank Group-backed Delhivery filed draft papers with India’s markets regulatory for an initial public offering (IPO) of its shares. Founded in 2011, the firm now intends to raise some INR74.60bn ($1bn) from the issue.

NYSE-traded FedEx announced in July that it will invest $100m in Delhivery. Under the agreement, FedEx Express’ chief executive Don Colleran will be nominated to join the Delhivery Board of Directors.

“FedEx Express will focus on international export and import services to and from India, and Delhivery will, in addition to FedEx, sell FedEx Express international products and services in the India market and provide pick-up and delivery services across India,” according to the media statement.


6.05 Price
-5.890% 1D Chg, %
Long position overnight fee -0.0262%
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Overnight fee time 22:00 (UTC)
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242.02 Price
-0.880% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
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140.74 Price
-4.400% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.28


463.08 Price
-2.070% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.18

“This transaction combines the FedEx global network with Delhivery’s extensive pan-India network and technology solutions to bring the best of both worlds together…”, the statement added.

A strategic priority for FedEx 

Delhivery covers 18,700 pin codes in the sub-continent. It offers freight, transportation, supply chain management and warehousing services to 15,000 customers, who operate across different business models and are present across the value chain.

“India is a strategic priority for FedEx,” FedEx Corp’s chief operating officer Raj Subramaniam stated in July. The “strategic alliance will support our long-term vision to grow our India business and serve customers seeking to expand in or enter the Indian market...”

Data available with Delhivery showed that the Indian logistics sector recorded a direct spend of $216bn in the financial year 2019-20.

Read more: India’s Puranik Builders gets regulatory approval for IPO

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The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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