Allcargo Logistics in a JV agreement with Nordicon Group to expand in Europe; Stock hits new high

This partnership will help better serve customers who are looking at flexible and time-bound logistics solutions in the Nordic region.

Jul 30, 2021 03:07 IST India Infoline News Service

Allcargo Logistics
Allcargo Logistics Ltd stocks hit fresh 52-week high after the company has announced that it’s wholly owned subsidiary Allcargo Belgium NV (Operating ECU Worldwide network), has signed a definitive Joint Venture agreement with Nordicon Group, the market leader in Nordics in LCL and rail consolidation.

ECU Worldwide will hold a 65% share, while the balance of 35% will be held by the present owners of Nordicon. With this strategic investment, ECU Worldwide will now be a market leader with a near 40% marketshare of the less-than-container-load (LCL) business in the Nordic region.

Nordicon is the leading neutral consolidation company in the Nordic region with offices in Sweden, Norway, Finland, and Denmark.

This agreement expands ECU Worldwide’s service network and global reach further, adding new geography and a specialized rail freight consolidation service to expand further across Europe. This partnership will help better serve customers who are looking at flexible and time-bound logistics solutions in the Nordic region.

Shashi Kiran Shetty, Chairman, Allcargo Logistics, ECU Worldwide, and Gati Ltd., said, “The partnership with Nordicon is in line with our vision of consolidating our market leadership and working with entrepreneurial teams to expand into new territories who share our vision for digital innovation for the logistics sector.

Nordicon is led by a strong and capable team, and we are very pleased to welcome them into the larger ECU Worldwide family. This partnership is a great way to scale the global business and better serve customers.”

“Nordicon has an innovative asset-light rail consolidation business which opens new opportunitiesfor ECU Worldwide across Europe,” said Ravi Jakhar, Chief Strategy Officer, Allcargo Logistics Ltd. “Nordicon’s integration with the ECU network will lead to incremental business revenue and margins at existing ECU offices across the world. This is a high value accretive deal for ECU Worldwide and Allcargo and will create value for stakeholders.”

The stocks hit 52-week high at Rs199.70 per share on Friday's early trade.

At around 3:25 PM, Allcargo Logistics was trading at Rs197.65 apiece up by Rs7.6 or 4% on Sensex.

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