WeWork to exit India; CCI approves stake sale to Real Trustee Advisory Company

The Competition Commission of India (CCI) has given the green light to Real Trustee Advisory Company for the proposed acquisition of a stake in WeWork India Management. This approval was announced on Tuesday, marking a significant development in the corporate landscape of flexible workspaces in India.

With this US-based co-working space firm WeWork Inc will sell its entire 27.5% ownership in its Indian unit, thus exiting the country.

WeWork India to sell stake

Real Trustee Advisory Company, acting as trustee for Volrado Venture Partners Fund II (Volrado II), along with Volrado Venture Partners Fund III - Beta (Volrado III) and other independent co-acquirers, is set to acquire a significant shareholding in WeWork India Management. Additionally, the deal involves Embassy Buildcon LLP acquiring 100% of the share capital of 1 Ariel Way Tenant Limited (OAW).

The sale is a two-step process wherein WeWork Inc and WeWork India's parent, Embassy Group, would jointly sell roughly 40% share in the local co-working subsidiary. A detailed order from the antitrust regulator is expected later.

Embassy Buildcon LLP is a well-known entity in the real estate sector, focusing on the development of residential and commercial properties and related activities. This strategic acquisition aligns with Embassy Buildcon’s growth plans and strengthens its position in the market. Meanwhile, WeWork India is renowned for providing flexible workspace solutions and digital real estate workplace services, catering to the evolving needs of modern businesses.

OAW holds shares in WeWork India on behalf of WeWork International, indicating a complex structure of shareholding and strategic investments aimed at bolstering WeWork India's operations and market reach. The acquisition is subject to regulatory oversight due to the scale of the deal, which surpasses the prescribed threshold requiring CCI's approval.

The CCI, in its official release, confirmed the approval, ensuring that the proposed transactions comply with fair competition standards. The regulatory body plays a crucial role in preventing unfair business practices and promoting a healthy competitive environment in the marketplace.

This acquisition is expected to enhance the operational capabilities of WeWork India, providing a robust platform for future growth. It underscores the increasing demand for flexible and innovative workspace solutions in the country, driven by changing business dynamics and the need for adaptable work environments.

Also Watch: Embassy Group to buy WeWork India's 27% stake; American WeWork Inc to exit India business