Allcargo Logistics, the largest integrated logistics player in the private sector, announced its second large overseas acquisition snapping up a 65 per cent ownership in a USD 44 million joint venture it has just set up with the Swedish player Nordicon Group. The promoters of the Nordicon Group will own the balance 35 per cent and will continue to lead the company as a joint venture. The new joint venture will house all the operations of the Nordicon Group, which is the market leader in the LCL (less-than-container-load) and rail freight consolidation segment in the Nordics region, will be headquartered in the Swedish city of Gothenburg, adding that it will become a part of the its Belgium arm ECU Worldwide network which Allcargo had bought in 2003.
This is the third major acquisition by Allcargo. In 2003, it bought ECU Worldwide — first 33 per cent stake and then increased it to 49.9 per cent in 2006. Its second acquisition was in December 2019 when announced takeover of Gati, one of the express logistics leaders in the country. Nordicon is the leading freight consolidation firm in the Nordic region with offices in home market Sweden, Norway, Finland, and Denmark. From its warehouse in Gothenburg as well as local terminals in each country, it consolidates freight to over 500 export destinations and from over 300 import locations around the world. With this strategic deal, ECU Worldwide will now control nearly 40 per cent of LCL market in the Nordic region, Jakhar said, adding the deal expands ECU Worldwide’s service network and global reach further, by adding new geographies and a specialised rail freight consolidation service across Europe.