Allcargo Logistics will be the majority shareholder, and the previous owner will retain the balance 25% stake. The acquisition expands and strengthens the service network of ECU Worldwide (an Allcargo Group Company) in strategically important market of Germany with sizeable volumes. The Bundeskartellamt, the German competition authority has also approved the acquisition.
Fair Trade GmBH has been a major player in consolidation segment in Germany, handling cargo movement across Europe-Asia, Europe-Latin America, and Europe-North America routes. The combined strength of ECU Worldwide’s operations in Hamburg and Fair Trade’s operations in Bremen will lead to increase in Allcargo’s service offerings and wider footprint in the German market. This deal will enable ECU Worldwide to forge a long-term relationship with Fair Trade’s current shareholder, who understands the markets and trade patterns of the region. This is expected to further augment ECU Worldwide’s market position as a global giant in the segment.
The experience in conducting business successfully in the region will enable ECU Worldwide to enhance its market position in Germany and add value to ECU’s global network that spans 180 countries with over 2400 servings and 40,000 port pairs with provision of door-to-door service in over 50 key global markets. Allcargo expects this acquisition to result in synergies in the form of better capacity utilization, improved efficiencies and better turnaround time.
Shashi Kiran Shetty, Founder and Chairman of Allcargo Group said, in a statement, “The acquisition comes at an important time for us because it helps us keep up with our strategic expansion plans. Not only does this consolidate ECU Worldwide’s service network and global reach but cements our presence in Germany through Fair Trade GmbH’s impeccable and in-depth understanding of the local market and trade patterns as well as cultural and business fitment to our asset-light business model and service-oriented approach.”
