KUALA LUMPUR – Permodalan Nasional Bhd (PNB) today confirmed the proposed consolidation of UMW Holdings Bhd (UMW Group) and Sime Darby Bhd, Malaysia’s multinational company in industrial and motors sectors with operations across the Asia-Pacific region.
Sime Darby has entered into a conditional share purchase agreement with PNB to acquire the latter’s 61.2% stake in UMW Group.
“The consolidation of two leaders in the automotive industry is driven by the opportunities to strengthen our local and regional presence in the automotive sector while providing a boost to the electrification agenda, which is expected to drive investment growth, enhance efficiency, and create value for our unit holders,” the fund management company said in a statement.
It said this strategic move is also in alignment with the government’s New Industrial Master Plan 2030, which will support the automotive sector’s further growth, especially in positioning the country as the automotive hub for the region.
Earlier, Sime Darby announced that it is acquiring a 61.2% stake in UMW Holdings Bhd from PNB for RM3.57 billion in cash, to further scale up and strengthen its presence in the Malaysian automotive sector.
The exercise, one of the largest merger and acquisition deals in Malaysia, will strategically transform Sime Darby into a leading automotive player in the country with the addition of high-volume mass-market brands, Toyota and Perodua, and capturing up to 60% of the domestic automotive total industry volume. – Bernama, August 24, 2023
