Australia’s biggest car maker, Holden, has bought parts supplier, Daimler, for $10.3 billion, the largest takeover in the world for a new car maker.
Holden said it would also acquire the engineering and manufacturing company that built the Holden VX sports utility vehicle.
The deal will see the former Daimlers’ Australian business merge with Holden’s international business to form the new Holden Global Business Group, which will have the ability to set its own goals and focus on its own growth.
Daimles global business unit was formed in July, when the two companies merged into one company, Holden Global.
Holden and Daimels car brands, the VX, were the first two cars sold in the U.S. and the largest selling brands in Australia.
The deal comes at a time when Australia’s economy is in crisis and Holden’s share price is down by 20 per cent in the past year.
Holden has been struggling to cope with falling global demand and falling car sales, and the deal will give it a chance to return to profitability.
Holden Global was established in 2017, and has become the world’s largest car maker by market capitalisation.
“Our strategy is driven by our belief that Holden has a strong future and we are excited to be joining forces with Daimle and their global business group to build a company with the broadest footprint and scale that Holden can,” Holden CEO Peter Jones said.
A spokesperson for Daimel said the deal was “a natural fit” for Holden, as it would support its global growth strategy.
Read more “This merger will enable us to focus on our global growth plan, while continuing to operate globally to meet the needs of customers, customers and stakeholders,” Daimelman said.
Holden will retain its headquarters in Australia, but Daimlin will have a separate global headquarters in Frankfurt.
The deal is expected to close in the second half of 2020.
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