CCI Clears Path for IRB Infrastructure Trust’s Acquisition in Meerut Budaun Expressway

The acquisition involves a consortium of investors known as the GIC Unitholders, which are part of the GIC Group managed by GIC Special Investments Private Limited.

Article: The Competition Commission of India (CCI) has given its nod to a strategic acquisition by IRB Infrastructure Trust in Meerut Budaun Expressway Limited, signaling a positive shift in the infrastructure landscape.

The acquisition involves a consortium of investors known as the GIC Unitholders, which are part of the GIC Group managed by GIC Special Investments Private Limited. These entities are set to play a pivotal role in the proposed transaction, which is structured to enhance the development of critical infrastructure in India.

IRB Infrastructure Trust, a key player registered with the Securities and Exchange Board of India, holds a diverse portfolio of toll road assets. The trust is closely associated with IRB Infrastructure Developers Ltd., which serves as the sponsor and project manager, and is known for its expertise in various road and highway concession models.

The centerpiece of this acquisition is Meerut Budaun Expressway Limited, a special purpose vehicle established to spearhead the construction of a significant segment of the Ganga Expressway. This project promises to bolster connectivity and economic growth in Uttar Pradesh with the development of a 129.7 km six-lane expressway.

The proposed combination unfolds in three strategic steps:

NCD Subscription: Both IRB and Anahera aim to subscribe to non-convertible debentures of MBEL. Should this step face any hurdles, the InvIT itself proposes to step in as a subscriber.

Trust Unit Issue: A fresh issuance of units by the InvIT to its existing unitholders, including IRB and the GIC Unitholders, is on the cards.

MBEL Acquisition: The final move involves the InvIT’s acquisition of equity shares and NCDs of MBEL, solidifying its stake in the expressway project.

This approval by the CCI is a testament to the robust regulatory framework that supports such significant investments, paving the way for infrastructural advancements and economic progress in the region.