FedEx fails to clinch Safexpress deal

Mumbai: Federal Express’ attempt to enter the domestic logistics business have received a setback with the failure of its attempt to buy out SafeExpress, one of the largest Indian logistics company. Persons close to the deal said the valuation was the deal-breakers. An e-mail sent to Safexpress has not elicited any response, while FedEx in an e-mailed response said: As a company policy, we do not comment on corporate development activities.
This deal could have been significant for FedEx Express, because its competitors, DHL and TNT, have been successful in entering the domestic logistics segment in India through strategic acqusitions. TNT acquired Speedage, a divison of ARC India, in 2006 for an amount of Rs 200 crore, while DHL had acquired 81.03 % of Blue Dart in 2004 for an amount of Rs 730 crore.
Had the deal gone through, it would have given FedEx a fairly huge chunk of the market in the express cargo, 3PL and warehousing segment.
11/07/07 Ashish Kumar Mishra/Economic Times

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Categories: Cargo Jul 2007, Foreign Jul 2007