31st Mar 2023 10:16
(Alliance News) - Inchcape PLC on Friday said it has struck a deal to acquire Mercedes-Benz's Indonesian business.
The automotive distributor said it is acquiring the unit in tandem with local partner Indomobil. Inchcape will acquire a 70% stake, and Indomobil the remaining 30%.
"The business has been operated by Mercedes-Benz since 1970, and includes both distribution and assembly operations," Inchcape said.
Indomobil operates more than 300 dealerships in Indonesia. Away from automotive distribution, it also deals in after-sales services, parts distribution, and vehicle financing services.
"The deal will expand Inchcape's existing distribution footprint in Indonesia, continuing to build on its well-established and growing presence in the [Asia Pacific] region. It will also strengthen Inchcape's relationship with Mercedes-Benz, following a number of distribution contract wins in the Americas region in recent years, as well as in the Philippines."
The acquisition is expected to be operating-margin accretive, and add around GBP200 million worth of annualised revenue.
The company added: "The transaction remains subject to customary conditions, with completion anticipated in late 2023."
Shares in the company traded 0.5% higher at 782.00 pence each in London on Friday morning.
By Eric Cunha, Alliance News news editor
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