Carlyle Secures CCI Approval to Acquire 68.9% Stake in Roop Automotives Ltd

The Competition Commission of India (CCI) has given the green light to Carlyle's plan to purchase a 68.9% stake in Roop Automotives Ltd. This transaction involves several interconnected steps, including a securities swap between HIL Shareholder and RAL, leading to Carlyle's acquisition of the stake. Carlyle, through its Mauritius-based special-purpose vehicle CA Carob Investments, will manage this investment.

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Roop Automotives Ltd and Highway Industries Ltd are both involved in producing and selling automotive components. As of September 30, 2024, Carlyle manages assets worth USD 447 billion. The CCI's approval confirms the acquisition of up to 68.9% of Roop Automotives by CA Carob Investments. This decision was announced in a release by the regulator.

Gentari Renewables' Acquisition

In a separate announcement, the CCI approved Gentari Renewables India's acquisition of 21 Special Purpose Vehicles (SPVs). These SPVs own renewable energy plants and hold stakes in other SPVs. Gentari Renewables India is an indirect subsidiary of Petroliam Nasional Berhad, focusing on renewable energy, hydrogen, and green mobility.

The SPVs involved in this deal are engaged in generating and selling power through wind turbines and solar plants. The CCI's approval was shared in a post on X. Such transactions require regulatory approval when they exceed certain thresholds to ensure fair competition and prevent unfair business practices.

The CCI plays a crucial role in maintaining market fairness by scrutinising deals that could impact competition. By approving these acquisitions, the regulator ensures that market dynamics remain balanced while fostering growth in sectors like automotive components and renewable energy.