CCI approves acquisition of 22% stake in Future Supply by Nippon Express
10 December 2019
The Competition Commission of India (CCI) has approved the acquisition of stake in Future Supply Chain Solutions Limited (Future Supply) by Nippon Express (South Asia & Oceania) Pte Ltd (Nippon Express).
The proposed combination pertains to the acquisition by Nippon Express of approximately 22 per cent of the total issued and paid-up share capital of Future Supply, on a fully diluted basis.
Nippon Express is a Singapore-based wholly owned subsidiary of Nippon Express Co Ltd, with operations over the South Asian and Oceania regions. It is a Japan-based global logistics company, which provides one-stop logistics services, which include, transport services, global supply chain management, warehouse and distribution services, etc.
Future Supply is a third-party supply chain and logistics service provider in India which offers automated and IT-enabled warehousing, distribution and other logistics solutions. These services include: (a) contract logistics; (b) express logistics; and (c) temperature-controlled logistics.
Future Supply, inter alia, offers warehousing and distribution services and automated technology systems to cater to its customers’ supply chain needs. Additionally, it also provides international freight forwarding services by water routes and air routes.
CCI said it would issue a detailed order later.
CCI also approved subscription of compulsorily convertible debentures (CCDs) of Piramal Enterprises Limited (Piramal Enterprises) by Caisse de dépôt et placement du Québec (CDPQ). Upon conversion, equity shareholding of CDPQ in Piramal Enterprises will increase from 3.68 per cent to 8.99 per cent.
The proposed combination entails subscription of CCDs of Piramal Enterprises by CDPQ, which upon conversion would result in increase in equity shareholding of CDPQ in Piramal Enterprises from 3.68 per cent to 8.99 per cent.
CDPQ is a Canadian institutional fund that manages and serves more than 40 depositors, which comprises public and private pension and insurance funds in Quebec, Canada.
Piramal Enterprises is an Indian multi-national conglomerate, with presence in financial services, pharmaceuticals and healthcare insights and analytics businesses. In India, its financial services business comprises, inter alia, wholesale lending (real estate and construction finance, corporate lending and emerging corporate lending), retail lending (housing finance, including loans against property) and alternative asset management.
Detailed order of the commission will follow.