Federal Express’ attempt to enter India’s domestic logistics business have received a setback with the failure of its attempt to buy out SafeExpress, one of India’s largest logistics companies, the Economic Times of India reported.

The deal could have been signifi cant 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 (2.46 million pounds), while DHL acquired 81.03 percent of Blue Dart in 2004 for an amount of Rs 730 crore (8.97 million pounds).

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. The opportunity for integrated solutions in the logistics industry is huge and FedEx Express, the world’s largest express distribution company did not want to miss it. But in a fi nal meeting some weeks ago, FedEx walked away from the deal. Ernst & Young were the bankers of Safexpress, while FedEx was represented by JP Morgan.