Sime Darby Completely Acquires UMW Holdings For RM5.84 Billion

Wil the recent acquisition of UMW Holdings by Sime Darby birth the largest automotive group entity ever established in Malaysia? Many experts believe so.

Local trading conglomerate Sime Darby Bhd (Sime Darby) has fully acquired 100% of UMW Holdings Bhd (UMW Holdings). 

Back in Aug 2023, Sime Darby agreed to acquire 61.2% of UMW Holdings for RM3.57 billion from Permodalan Nasional Berhad (PNB). Following which came a mandatory offer to purchase the remaining 38.8% for a sum of RM2.27 billion. The full acquisition came at a cost of RM5.84 billion in total.

“Our foremost priority now is to complete the integration of UMW into the wider Sime Darby ecosystem,” said Sime Daby’s Group CEO Datuk Jeffri Salim Davidson. The exec further highlights that the acquisition aligns with Sime Darby’s five-year strategy masterplan to grow its core industrial and motor businesses across key regional markets.

UMW Holdings presently holds the Toyota and Lexus brands through its UMW Toyota Motor subsidiary, as well as second national carmaker Perodua.

As a refresher, UMW Holdings currently holds both the Toyota and Lexus brands through its UMW Toyota Motor (UMWT) subsidiary, as well second national carmaker Perusahaan Otomobil Kedua Sdn Bhd – Perodua.

Sime Darby, on the other hand, sees its Sime Darby Motors division represent over 10 brands through various subsidiaries. Amongst them are Auto Bavaria (BMW, BMW Motorrad, MINI), Sime Darby Auto Performance (Porsche), Sime Darby Auto Connexion (Ford), BYD SD Motors (BYD), JLR Malaysia (Jaguar Land Rover), Sime Darby Auto Hyundai (SDAH), and more.

Brands controlled and represented by Sime Darby, on the other hand, include the likes of Porsche, Ford, Hyundai, Jaguar Land Rover, and more.

Besides the retail and distribution efforts, the Sime Darby Motors portfolio also includes assembling firm Inokom Corporation Sdn Bhd. Besides Sime Darby-controlled brands, said firm also assembled other non-Sime Darby-owned marques like Mazda, Kia, and Chery.

It’s unclear still for now how the newly acquired assets from UMW Holdings will be integrated into Sime Darby Motors, but many experts have tipped that this will lead to the birth of perhaps Malaysia’s largest ever automotive group in existence.

Source: Bernama