Eagers Automotive (ASX:APE) has announced an increase in its ownership interest in the retail joint venture with electric vehicle manufacturer BYD. The company has acquired an additional 31% ownership interest in EV Dealer Group Pty Ltd, the exclusive national retail joint venture for BYD in Australia. The acquisition was completed recently, solidifying Eagers Automotive's position as the exclusive retail partner for BYD in the Australian market.
To secure the additional ownership interest, Eagers Automotive purchased the stake from EVDirect.com for a total consideration of $70 million. The transaction involved $50 million in cash and $20 million worth of APE shares. With this acquisition, Eagers Automotive now holds an impressive 80% ownership interest in the BYD retail joint venture, while EVDirect.com retains the remaining 20%.
This move by Eagers Automotive reflects its commitment to leading the way in the transition to new energy and low emission vehicles, positioning the company as a prominent player in the evolving automotive landscape. The increased ownership interest in the BYD retail joint venture strengthens Eagers Automotive's role as the primary retail partner for BYD and EVDirect.com in Australia.
By deepening its ties with BYD, a renowned manufacturer of electric and new energy vehicles, Eagers Automotive aims to capitalise on the growing demand for sustainable transportation options. The partnership with BYD enables Eagers Automotive to offer a wide range of electric and low emission vehicles to Australian consumers, contributing to the country's efforts to reduce carbon emissions and promote environmentally friendly transportation solutions.
While Eagers Automotive's increased ownership interest in the BYD retail joint venture is a significant development, it is worth noting that the company operates independently of the joint venture as well. This allows Eagers Automotive to explore other opportunities and partnerships in the electric and new energy vehicle space, expanding its reach and influence in the Australian market.
With the acquisition of the additional ownership interest, Eagers Automotive strengthens its position as a leader in the automotive industry's shift towards sustainable mobility. By aligning itself with a renowned electric vehicle manufacturer like BYD, Eagers Automotive demonstrates its commitment to providing customers with access to innovative and eco-friendly transportation options.
As the demand for electric vehicles continues to rise, Eagers Automotive is well-positioned to meet the evolving needs of Australian consumers and contribute to a greener future.
