India, Nov. 16 -- Last week, the Indian automotive sector woke up to what might be one of the most significant M&As in the making. CarTrade is said to be in advanced talks to acquire CarDekho, a used car marketplace cofounded by Shark Tank India judge Amit Jain.

Reports indicate that CarTrade, valued at roughly $1.5 Bn, is exploring a potential buyout of CarDekho's classified business at a valuation of $1.2 Bn to strengthen its consumer business vertical.

However, a key piece of the puzzle, which also has us perplexed, is: why would a fundamentally strong company like CarTrade - whose shares have literally rocketed 167% since last year - even think about buying a loss-making rival at such a hefty valuation? Besides, what makes the acqui...