AP Eagers Ltd (ASX: APE) has a plan to get its takeover
of Automotive Holdings Group Ltd
(ASX: AHG) approved.
A.P. Eagers is Australia’s oldest listed automotive retail group, it has been going for over a century. It operates automotive dealerships across Queensland, South Australia, New South Wales, Victoria, Northern Territory and Tasmania. It has over 4,500 employees.
AP Eagers’ Offer
AP Eagers has offered to divest its Kloster Motor Group business to receive ACCC approval
Klosters is an 85-year old automotive retailers based in the Newcastle and Hunter Valley region which has been owned by AP Eagers since 2007, which generates $420 million in annual revenue.
It operates dealerships in Newcastle, Cardiff and Maitland selling BMW, Ford, Honda, Hyundai, Mini, Mitsubishi, Suzuki and Volkswagen.
Klosters will be sold to Tony White Group for $54 million for net assets and goodwill and is expected to complete in November 2019 on a number of approvals including the ACCC authorisation of the AHG acquisition.
Whilst there are many potential synergies to be made from a merger between the two car dealerships, it’s not the type of industry I want to be invested in for the long term. I’d much rather buy shares of the reliable businesses in the free report below.
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