Allcargo Logistics, the largest conglomerate in the private sector, has bought a 75% stake in European rival Fair Trade for €12 million, valuing the German company at €16 million.

The city-based company said in a statement that the acquisition was made through its European subsidiary Allcargo Belgium, which operates as ECU Worldwide.

The existing owners will retain the remaining 25% stake in the company, it added without providing a value for the deal, which has been approved by Germany’s competition authority, the Bundeskartellamt.

However, a company official told PTI that Allcargo had paid €12 million for a controlling stake, valuing the German company at €16 million.

The acquisition, subject to regulatory approval, will expand and strengthen ECU Worldwide’s service network throughout Europe, especially in Germany, the EU’s largest economy.

Allcargo acquired a 65% stake in the Belgian company, also known as Nordicon, in July 2021 for about $28 million.

ECU’s global network spans 180 countries, provides more than 2,400 services and 40,000 port pairs, and provides door-to-door services in more than 50 major global markets.

Fair Trade is a major player in Germany’s cargo consolidation space, handling cargo traffic on the 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 increase Allcargo’s service coverage and expansion in Germany, the company said, adding that the acquisition will see ECU Worldwide enter a long-term partnership with Fair Trade currently with a relationship with shareholder, which in turn will further strengthen ECU’s market position.

Shashi Kiran Shetty, founder and chairman of Allcargo Group, expects the acquisition to generate synergies in the form of better capacity utilization, higher efficiencies and shorter turnaround times.

Shetty added that the acquisition is part of the group’s strategic expansion plan. The deal not only strengthens ECU’s service network and global presence but also strengthens our presence in Germany.

Allcargo is a global leader in intermodal logistics solutions with a presence in more than 180 countries, and its European subsidiary ECU Worldwide is a global leader in ocean freight consolidation. In addition to businesses such as contract logistics, Allcargo is the domestic market leader in the container freight terminal business and, through its subsidiary Gati, a leader in express logistics.