PNB Weighs RM10 Billion Automakers Merger In EV Push - Sources

According to two unnamed sources, Permodalan Nasional Bhd (PNB), the largest asset manager in Malaysia, is considering merging Sime Darby Motors and Perusahaan Otomobil Kedua (Perodua) to create a local automotive giant with a value of more than RM10 billion.
Reuters reported that the state-owned PNB is consulting with advisers about various options, including first merging the holding companies of the two units and then forming a larger automotive group that could help spearhead the development of Malaysia's electric vehicle (EV) sector.

PNB, Sime Darby, UMW, and Perodua did not respond to requests for comment.

The plan comes as the Malaysian government pushes to develop the country's EV sector, as competition in Southeast Asia heats up to become the main player or a hub in the global EV production and supply chain.

PNB, which manages over RM300 billion in assets, could drive such a deal because it owns nearly 50% of Sime Darby Motors' parent company, Sime Darby, and is also the largest shareholder in Perodua's top stakeholder, with a direct 10% stake in Perodua.

PNB owns 60.6% of the industrial conglomerate UMW Holdings, which owns 38% of Perodua, the country's largest automaker by market share. According to Perodua's website, other shareholders include Daihatsu, MBM Resources, and Mitsui & Co. Other EV manufacturers in Southeast Asia include VinFast in Vietnam and Merdeka Battery and Trimegah Bangun in Indonesia, which supply the key battery metal in the global EV supply chain.

Sime Darby Motor has been advocating for the adoption of electric vehicles in Malaysia. The Selangor-based company intends to build EV charging stations along Peninsular Malaysia's highways and has been selling China's BYD EVs in the country. Perodua is also interested in entering the EV market and began research last year to build its first hybrid vehicle.