Closing is expected to take place over the coming weeks, Axel Springer said in a statement.
Though the financial details of the deal were not disclosed, it is reported that the deal size would be around US$80 million-US$90 million.
Axel Springer had acquired 91 per cent stake in CarWale five years ago.
CarTrade and CarWale will continue to operate independently. CarWale will focus on the new car segment while CarTrade will be in the used cars space.
The two-wheeler retail division Bikewale will also move to CarTrade as part of the deal.
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“Through the merger with CarTrade, we are facilitating reasonable market consolidation and, at the same time, are multiplying our invested capital in a highly competitive market,” said Ralph Büchi, President International, Axel Springer.
This latest acquisition is another example of the consolidation in the online car trade market.