CCI Greenlights Cintra’s Strategic Acquisition in IRB Infrastructure Trust and MMK Toll Road

Cintra InvIT Investments B.V. and Cintra IM Investments B.V., collectively known as the Acquirers, are special purpose vehicles (SPVs) based in the Netherlands.

 The Competition Commission of India (CCI) has recently sanctioned a pivotal acquisition deal, marking a significant consolidation in the infrastructure sector. The deal involves the acquisition of stakes in IRB Infrastructure Trust and MMK Toll Road Private Limited by Cintra, a subsidiary of the global infrastructure leader Ferrovial group.

Cintra InvIT Investments B.V. and Cintra IM Investments B.V., collectively known as the Acquirers, are special purpose vehicles (SPVs) based in the Netherlands. These SPVs, wholly owned by Cintra Global S.E., are instrumental in this strategic move, which is set to bolster Cintra’s footprint in the toll roads development and management arena.

At the heart of this transaction is the IRB Infrastructure Trust, a private trust registered under Indian regulations, with IRB Infrastructure Developers Ltd and GIC as its sponsors. The trust oversees the operation of 14 highway assets, managed under concessions from various nodal agencies. The trust’s investment focus is on road infrastructure assets across India, held through subsidiary SPVs.

The proposed combination is twofold:

Cintra SPV 1 is set to acquire approximately 24% of the total unitholding in the Private InvIT, along with specific rights negotiated for the deal.

In tandem, Cintra SPV 2 will simultaneously secure a similar 24% equity shareholding in the investment manager of the Private InvIT, with the added privilege of appointing a director to its board.

This strategic acquisition by Cintra is poised to create a robust platform for future growth in the Indian infrastructure domain, aligning with the country’s burgeoning demand for efficient and sustainable transport solutions.