The shares of CarTrade Tech jumped more than 5 percent in the early trading hours of November 11 after the company confirmed reports stating that it is in talks to acquire rival CarDekho. The shares were trading at Rs 3,146 apiece.
Earlier yesterday, Moneycontrol reported citing sources that the Mumbai-based auto-tech company, which operates platforms such as CarWale, BikeWale, and OLX India, is close to finalising an acquisition of rival CarDekho in a deal valued at over $1.2 billion.
About CarTrade's potential acquisition:
The prospective transaction will be among the largest in India's digital auto space and is likely to be structured as a cash-and-equity deal, with due diligence completed and final terms under negotiation, Moneycontrol reported.
If completed, the merger would combine India's two most established digital auto players and reshape competition for other operators like Cars24, Spinny, and Droom, which have been expanding aggressively in used cars and financing.
Here's what CarTrade Tech said:
In an exchange filing released on November 11, Cartrade Tech said that it evaluates various strategic opportunities, including potential investments and acquisitions, as part of its growth strategy. "In this context, the Company has been in discussions with Girnar Software regarding a potential consolidation opportunity in the new and used automotive classifieds businesses (CarDekho and BikeDekho) in India. These discussions are limited to the automotive classifieds businesses and do not include financing, insurance, or other non-automotive businesses of theirs," it said.
CarTrade Tech noted that there is no binding or definitive agreement executed in relation to the transaction as of yet. It added that if any such deal is executed, it will make the necessary disclosures.
CarTrade Tech share price:
CarTrade Tech shares sharply gained more than 5 percent in the early trading hours after the firm’s confirmation. However, the stock then erased all gains and tumbled nearly 3 percent to trade at Rs 2,896 apiece, as seen at 10.06 am.
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Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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