Shares of CarTrade Tech Ltd soared more than 5% on 11 November after the company announced that it is in talks to acquire rival CarDekho.  

Earlier yesterday, the Mumbai-based auto-tech business, which operates platforms such as CarWale, BikeWale, and OLX India, was close to completing an acquisition of rival CarDekho for more than $1.2 billion.

The proposed acquisition will be among the largest in India’s digital vehicle industry and will most likely be structured as a cash-and-equity transaction, with due diligence finished and final terms being negotiated.

If completed, the merger would bring together India’s two most established digital auto companies, reshaping competition for smaller operators such as Cars24, Spinny, and Droom, which have been actively expanding into used cars and financing.

Cartrade Tech stated in an exchange statement dated 11 November that the company is evaluating different strategic alternatives, including prospective 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 stated that no binding or definitive agreement has been executed in connection with the transaction as of yet.  It further stated that if such a deal is consummated, it will make the relevant disclosures.

However, at 1:30 pm, the shares of CarTrade Tech were trading 0.79% lower at Rs 2,958 on NSE.

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