The Competition Commission of India (CCI) has recently approved two significant deals poised to reshape the logistics and commercial vehicle sectors in India. These include Delhivery's acquisition of Ecom Express and Mahindra & Mahindra's (M&M) acquisition of SML Isuzu.

Delhivery's Acquisition of Ecom Express

The CCI has given the green light to Delhivery's acquisition of a 99.44% stake in Ecom Express, a move initially announced in April 2025. The deal, valued at approximately INR 1,400 crore ($165 million), is expected to significantly boost Delhivery's operations and improve service quality through network expansion and improvements.

Ecom Express, founded in 2012, provides end-to-end technology-enabled logistics solutions to the Indian retail and e-commerce industry. The company offers services such as first-mile pickup, processing, network operation, last-mile delivery, reverse logistics, and fulfillment solutions. To date, Ecom Express has delivered nearly 2 billion shipments to 97% of Indian households.

Delhivery, an integrated logistics player, offers a full range of logistics services. The acquisition of Ecom Express is projected to enhance Delhivery's scale and strengthen its value proposition to clients. According to Delhivery's MD and CEO, Sahil Barua, the acquisition will enable the company to better serve customers through continued investments in infrastructure, technology, network, and people.

This acquisition comes at a valuation that is reportedly 80% lower than Ecom Express's previous valuation of INR 7,000 crore. Ecom Express faced a series of setbacks, including the loss of its biggest customer, Meesho, leadership exits, and delays in going public. Meesho's decision to build its own logistics arm, Valmo, significantly impacted Ecom Express's revenue. Other major clients like Reliance and Amazon also scaled back their operations with Ecom Express, exacerbating the company's challenges.

In the first nine months of FY25, Ecom Express reported a revenue of INR 1,912 crore, compared to a total revenue of INR 2,653 crore in FY24. The company's net loss for 9M FY25 was INR 398 crore, higher than the total net loss of INR 215 crore for FY24. In contrast, Delhivery reported a net profit of INR 73 crore in Q4 FY25, marking its first-ever profitable financial year with a profit of INR 162 crore.

M&M's Acquisition of SML Isuzu

The CCI has also approved Mahindra & Mahindra's acquisition of a 58.96% stake in SML Isuzu for INR 555 crore. This strategic move aims to bolster M&M's presence in the >3.5T commercial vehicle segment.

As part of the agreement, M&M will purchase 63.62 lakh shares of SML from Sumitomo Corporation at Rs 650 per share, totaling Rs 413.55 crore, which constitutes approximately 43.96% of SML's shareholding. Additionally, M&M will acquire 21.70 lakh shares from Isuzu Motors Limited, representing 15% of SML's equity, for Rs 141.10 crore, also at Rs 650 per share.

Anish Shah, Group CEO & MD of the Mahindra Group, stated that the acquisition of SML Isuzu marks a significant milestone in Mahindra Group's vision of delivering 5x growth in its emerging businesses. M&M aims to increase its market share in the >3.5T CV segment from 3% to 6% with this acquisition, with further plans to reach 10-12% by FY31 and over 20% by FY36.

SML Isuzu has a leading position in the ILCV Buses segment, holding approximately 16% market share. In FY24, the company reported operating revenue of Rs 2,196 crore and EBITDA of Rs 179 crore.

The acquisition is expected to unlock synergies across cost structures, brand leverage, manufacturing efficiencies, and product portfolios. Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra Ltd, noted that SML brings a strong legacy, a loyal customer base, and a credible product portfolio that complements Mahindra's existing offerings in the trucks and buses segment.

Completion of the acquisition is subject to customary closing conditions and is anticipated to be finalized by December 2025.