CCI Approves Cube Highways’ Acquisition of Three Key Toll Road Assets in India

The acquisition aligns with Cube Highways’ long-term vision to consolidate and operate a diversified portfolio of high-quality toll and annuity road assets across India.

In a significant development in the Indian infrastructure sector, the Competition Commission of India (CCI) has approved the proposed acquisition of three highway infrastructure companies—Athaang Devanahalli Tollway Private Limited (ADTPL), Athaang Jammu Udhampur Highway Private Limited (AJUHPL), and Quazigund Expressway Private Limited (QEPL)—by Cube Highways Trust and Cube Highways and Infrastructure V Pte. Ltd. (Cube V). This strategic acquisition highlights Cube Highways’ continued expansion in India’s growing road and highway infrastructure space.

Details of the Proposed Combination

The transaction structure involves two key acquiring entities under the Cube Highways platform:

1. Cube Highways and Infrastructure V Pte. Ltd. (Cube V), a Singapore-based entity registered with the Securities and Exchange Board of India (SEBI) as a foreign portfolio investor, will acquire a 100% stake in Athaang Devanahalli Tollway Private Limited (ADTPL).

2. Cube Highways Trust (Cube Trust), an infrastructure investment trust (InvIT) registered with SEBI under the SEBI (Infrastructure Investment Trusts) Regulations, 2014, will acquire 100% ownership of both Athaang Jammu Udhampur Highway Private Limited (AJUHPL) and Quazigund Expressway Private Limited (QEPL).

Collectively referred to as the “Targets,” these three companies operate vital road and highway projects across different regions of India. They function as special purpose vehicles (SPVs) established to manage and maintain government concession-based toll roads.

Strategic Importance of the Acquisition

The acquisition aligns with Cube Highways’ long-term vision to consolidate and operate a diversified portfolio of high-quality toll and annuity road assets across India. The transaction is expected to enhance the operational synergies between Cube V and Cube Trust, as well as increase their footprint in the Indian highway infrastructure domain.

Cube Trust is already a significant player in the Indian roads sector, managing a robust portfolio of infrastructure assets. The trust primarily focuses on the operation and maintenance (O&M) of roads and highways under various concession agreements with Indian governmental agencies. With a growing network of roads across several states, Cube Trust has been instrumental in modernizing and streamlining toll road operations through innovative asset management practices and a strong emphasis on operational efficiency.

Cube V, on the other hand, brings international investment expertise and plays a key role in acquiring and managing strategic road infrastructure assets in India. As a foreign portfolio investor, Cube V offers access to global capital and infrastructure development experience, complementing the domestic operations managed under the InvIT structure.

Overview of the Target Companies

• ADTPL (Athaang Devanahalli Tollway Private Limited) operates a key toll road in Karnataka, facilitating connectivity near the Kempegowda International Airport and playing a vital role in regional transport and logistics.

• AJUHPL (Athaang Jammu Udhampur Highway Private Limited) manages an important stretch in Jammu and Kashmir, improving connectivity between Jammu and Udhampur—two key cities in the region. The highway is essential for trade, tourism, and military logistics.

• QEPL (Quazigund Expressway Private Limited) operates a critical highway section in the Kashmir valley, contributing to smoother transport flows in the northernmost part of India.

Each of these assets holds long-term concession rights granted by various Indian government agencies, making them valuable additions to the Cube Highways portfolio.

Regulatory and Market Impact

The approval from the Competition Commission of India affirms that the proposed combination does not pose any adverse effect on competition within the Indian market. It also reflects the growing investor interest in India's infrastructure sector, which has seen increasing participation from both domestic and foreign institutional investors.

With this acquisition, Cube Highways is expected to enhance its capabilities in traffic management, toll collection, and infrastructure sustainability. Furthermore, the transaction underlines the trust that global investors place in India’s infrastructure regulatory frameworks and investment climate.

Looking Ahead

As India continues to invest heavily in its national highway and transportation infrastructure, such acquisitions are likely to become more frequent, contributing to the consolidation and modernization of the sector. Cube Highways, with its strong capital backing and operational expertise, is well-positioned to be a leading force in this transformation.

This acquisition is a strategic step that not only expands Cube Highways' asset base but also underscores its long-term commitment to India's infrastructure growth story.