10:14 am, March 31, 2023
Inchcape has expanded its distribution footprint in Indonesia after buying Mercedes-Benz’s business there.
The deal, which adds the German manufacturer to its Indonesia portfolio, involves Inchcape’s local partner Indomobil and was announced this morning via the London Stock Exchange.
It’ll see Inchcape acquire 70 per cent of the equity of existing Mercedes-Benz subsidiaries in Indonesia, with Indomobil getting the rest.
The business has been operated in the Asia-Pacific (Apac) region by Mercedes-Benz since 1970, and includes distribution and assembly operations.
It’s expected to reap Inchcape some £200m more revenue each year, with completion of the purchase, which was for an undisclosed sum, poised to take place later this year.
Ruslan Kinebas, chief executive of Inchcape for the Apac region, said: ‘We are very pleased to be expanding our presence in Indonesia with the acquisition of Mercedes-Benz’s Indonesian operations in a joint venture with Indomobil, with whom we already have a strong in-country distribution partnership.
‘We look forward to combining our local expertise with our leading digital and data capabilities to grow the business further.’
He added: ‘This acquisition is another good example of Inchcape’s role as the partner of choice for OEMs as they work to optimise their global operations.
‘The deal continues Inchcape’s strong momentum in the Apac region, which is underpinned by an attractive pipeline of opportunities both in markets which are new to Inchcape and where we have established operations.’
At the beginning of the year, Inchcape expanded its footprint in the Asia-Pacific region after signing an agreement with Philippines-based CAT Motors.
The deal saw it take a majority stake in the company and strengthened its relationships in the region with manufacturers including Mercedes-Benz.
Headquartered in London, Inchcape employs around 19,000 people globally.
It also has franchised dealerships in the UK representing Mercedes-Benz as well as Audi, BMW, Jaguar, Land Rover, Lexus, Mini, Porsche, Smart, Toyota and Volkswagen, while its retail brands include the used car outlet Bravoauto.
