The Competition Commission of India (CCI) has approved Nippon Express' acquisition of 22 percent stake in the Future Supply Chain Solutions Ltd. (FSC).

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“Nippon Express and FSC have received all necessary approvals with respect to Nippon Express’ acquisition of 22 percent stake in FSC, announced on September 20, 2019. This includes approval from the Competition Commission of India, FSC shareholders, BSE Limited and the National Stock Exchange of India Limited,” FSC said in a regulatory filing.

According to the transaction, the Future Group's logistics arm will issue 3.78 million shares to Nippon Express at a price of Rs 664 per share.

Further, the company informed that it has signed a Business Collaboration Agreement (BCA) with Nippon Express to jointly explore growth opportunities for new and existing customers based on their strategic partnership and business collaboration and expand revenues for both the companies.

The two companies will jointly start the business collaboration from January 2020, it added.

Both the companies have agreed to formalise a steering committee and Nippon Express will depute its representatives to operate alongside FSC’s management.

“This partnership will form an important part of our long-term vision of becoming a logistics company with a strong presence in global market through dynamic growth. To be specific, we hope to increase our sales outside Japan from our current sales of US$ 4 billion to US$ 12 billion by 2028 and become a proud world-class logistics company,” said Satoshi Horikiri, Senior Managing Executive Officer, and Chief Managing Officer of International Business Headquarters at Nippon Express