Allcargo Logistics Ltd is in talks to acquire stake in its rival Gati Ltd in a bid to expand its reach in the country, reported Mint.

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Allcargo is in discussions to acquire Gati at an equity valuation of about Rs 1,300 crore, a person familiar with the matter told Mint. The deal will include mandatory offer to buy all outstanding shares of Gati. Goldman Sachs Group has a six percent share in Gati.

“For Allcargo, which was primarily into foreign trade business, buying a stake in Gati is a clear de-risking initiative as the latter is more focused on domestic business… This acquisition will help Allcargo offer total logistics solutions to e-commerce companies," Mathew Antony, managing partner at Mumbai-based advisory firm, Aditya Consulting was quoted as saying in the report.

While Gati has managed to get approval for the proposed sale it is yet to be approved by the Allcargo’s board. The board is likely to consider the proposed acquisition in October, the report added, citing people aware of the matter.