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Allcargo Logistics Completes Acquisition of Fair Trade, Securing Full Ownership

23 May 20243 mins read by Angel One
Allcargo Logistics Ltd, through its subsidiary, has acquired a residual 25% stake in Fair Trade GmbH to bolster its presence in the German market.
Allcargo Logistics Completes Acquisition of Fair Trade, Securing Full Ownership
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Allcargo Logistics Limited, a leading integrated logistics solutions provider in India, announced the successful completion of the acquisition of Fair Trade GmbH, a German freight forwarding company. This strategic move strengthens Allcargo’s presence in the European market, particularly within the key German logistics landscape.

Acquisition Finalized, Full Ownership Secured

On May 21, 2024, Allcargo Logistics’ wholly-owned subsidiary, ECU Worldwide N.V. (formerly Allcargo Belgium N.V.), acquired the remaining 25% stake in Fair Trade for a total consideration of EUR 2.9 million. This acquisition follows an initial investment in January 2023, where ECU Worldwide acquired a 75% stake in Fair Trade. With the completion of this transaction, ECU Worldwide now holds a 100% ownership interest in Fair Trade.

Strategic Rationale and Synergies

The acquisition of Fair Trade aligns with Allcargo Logistics’ expansion strategy, specifically targeting growth in the full container load (FCL) and less-than-container load (LCL) segments within the crucial German market. Fair Trade, with its established operations in Bremen and Hamburg, boasts a strong reputation for FCL and LCL consolidation services, handling both inbound and outbound freight across various global destinations. This acquisition presents a synergistic opportunity for Allcargo Logistics to leverage Fair Trade’s expertise and network, further consolidating its foothold in the European market.

Compliance and Future Outlook

The acquisition was completed in adherence to all local regulatory requirements. By integrating Fair Trade’s operations, Allcargo Logistics gains a significant advantage, enabling them to offer a comprehensive suite of logistics solutions to a wider clientele base in Europe. This strategic move positions Allcargo as a more prominent player in the German logistics sector, poised to capitalise on future growth opportunities.

About Allcargo Logistics Ltd

Founded in 1993, Allcargo Logistics offers specialised logistics services and integrated logistics solutions for inland container depots, container freight stations, contract logistics operations, project and engineering solutions, and multimodal transport operations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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