Cintra's Acquisition of IRB Infrastructure Trust and MMK Toll Road Pvt Ltd Approved by CCI

The Competition Commission of India (CCI) has given its nod to Cintra's acquisition of a 24% stake in IRB Infrastructure Trust and MMK Toll Road Pvt Ltd. This strategic move is set to bolster Cintra's presence in India's infrastructure sector.

Why this matters: This acquisition has significant implications for India's road infrastructure sector, as it brings in global expertise and investment. It could lead to improved efficiency and management of toll roads, contributing to the country's infrastructure growth and development.

The acquisition involves two transactions. Cintra InvIT Investments BV (Cintra SPV 1) will acquire approximately 24% of the issued and outstanding unitholding in IRB Infrastructure Trust, along with certain commercially negotiated rights. Simultaneously, Cintra IM Investments BV (Cintra SPV 2) will acquire approximately 24% equity shareholding in MMK Toll Road Pvt Ltd, the investment manager of IRB Infrastructure Trust, and gain the right to nominate a director on the board of directors.

IRB Infrastructure Trust is a private trust registered under the Indian Trusts Act 1882 and SEBI's Infrastructure Investment Trusts Regulations 2014. It operates 14 highway assets in India. MMK Toll Road Pvt Ltd is the investment manager of the trust, registered with the Securities and Exchange Board of India (SEBI).

Cintra, a global developer of transport infrastructure, mobility solutions, and engineering, is a division of the Ferrovial group, a Spanish multinational company. The acquisition is part of Cintra's strategy to expand its footprint in the Indian toll road market.

In addition to this acquisition, the CCI has also approved the acquisition of Meerut Budaun Expressway Ltd by IRB Infrastructure Trust. This move enhances IRB's development of the Ganga Expressway project. The approval includes the issuance of non-convertible debentures (NCDs) and new units to existing InvIT unitholders.

The CCI's approval is essential for transactions beyond a certain threshold, ensuring fair competition in the marketplace and preventing unfair business practices. This regulatory green light paves the way for Cintra to solidify its presence in India's burgeoning infrastructure sector.

With this strategic investment, Cintra aims to leverage its global expertise in transport infrastructure to enhance the efficiency and management of India's toll roads, contributing to the country's infrastructure growth and development.

This acquisition marks a significant step for Cintra as it continues to expand its global footprint and invest in key infrastructure projects worldwide.

Key Takeaways

• Cintra acquires 24% stake in IRB Infrastructure Trust and MMK Toll Road Pvt Ltd.
• Acquisition brings global expertise and investment to India's road infrastructure sector.
• Cintra aims to enhance efficiency and management of toll roads in India.
• CCI approval paves way for Cintra's expansion in India's infrastructure sector.
• Acquisition marks a significant step in Cintra's global infrastructure investment strategy.