CCI Approves Carlyle’s Acquisition of Up to 68.9% Stake in Roop Automotives

The Competition Commission of India (CCI) has granted approval for a proposed combination involving multiple inter-connected steps that will result in the acquisition of up to 68.9% shareholding in Roop Automotives Limited (RAL) by CA Carob Investments (Investor). This development marks a significant milestone in the automotive components sector, highlighting increased investor interest in India’s manufacturing space.

The Proposed Transaction

The transaction involves a sequence of inter-connected steps, including:

1. Securities swap arrangements between Highway Industries Limited (HIL) shareholders and RAL.
2. The acquisition of up to 68.9% equity in RAL by CA Carob Investments.

These steps are strategically designed to facilitate Carlyle’s investment in RAL, thereby strengthening its position in the Indian auto-components industry.

About the Investor

CA Carob Investments, the acquiring entity, is an investment holding company incorporated in Mauritius. It operates as a special purpose vehicle (SPV) owned and managed by investment funds affiliated with The Carlyle Group Inc. (Carlyle). As of now, the Investor does not engage in any operational activities.

Carlyle is a globally renowned alternative asset manager with investments spread across four key disciplines:

1. Corporate Private Equity: Buyouts and growth capital investments.
2. Real Assets: Investments in real estate, infrastructure, and renewable energy.
3. Global Credit: Structured, private, and distressed credit.
4. Investment Solutions: Private equity fund of funds and co-investment opportunities.

About Roop Automotives Limited (RAL)

Roop Automotives Limited is a public limited company based in India. It specialises in manufacturing and selling auto components, catering to the growing demand for automotive parts. Its established operations and expertise make it an attractive investment target for global players looking to capitalise on India’s expanding automotive market.

About Highway Industries Limited (HIL)

Highway Industries Limited, also a public limited company in India, operates in the auto-components manufacturing and sales domain. The involvement of HIL through securities swaps in the proposed transaction highlights its strategic role in facilitating the deal.

Key Stakeholders

• Mohit Oswal and Gaurav Jain: Both serve as Managing Directors and shareholders of RAL. Their leadership has been instrumental in positioning RAL as a competitive player in the auto-components industry.
• HIL Shareholder: A partnership firm under Indian laws, holding equity shares in HIL, is actively participating in the restructuring process to enable this transaction.

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