To improve its logistics service in India, US-based company Amazon is in talks to acquire 75 percent stake held by DHL Express Singapore PTE Ltd in courier and integrated package distribution company, Blue Dart for a deal amount of USD 2 billion.
As per an ET report, the talks are currently at an early stage and if the deal goes through then it will help Amazon to expand its overall customer reach, boost its delivery services and provide an edge over its competitors Flipkart and Snapdeal.
Blue Dart has a domestic network covering over 34,248 locations, and services more than 220 countries. The firm has warehouse at 72 locations across the country along with bonded warehouse at 7 metros including Ahmedabad, Bengaluru, Chennai, Delhi, Mumbai, Kolkata and Hyderabad.
DHL acquired Blue Dart in 2005 for a deal amount of USD 162 million through its Singapore subsidiary DHL Express. Blue Dart handles all domestic consignments and its international consignments are routed via DHL.
Dipan Mehta, a minority shareholder in DHL said, “I do not think that having Amazon as the ultimate holding company of Blue Dart makes us any better off. In fact it makes us worst off as I said that what DHL brings to the table in terms of brands, systems, global connectivity is not something which Amazon can match.”
In August 2014, Deutsche Post DHL (DPDHL) had announced that it plans to invest around INR 800 crore in Indian e-commerce business including express (small parcel transportation), aviation, e-commerce and warehousing, in the next two years.
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