Indonesian company PT Chandra Asri Pacific will buy Jardine Cycle & Carriage’s (JC&C) businesses in Singapore and Malaysia.
Shifting focus
PT Chandra Asri Pacific is set to buy a group of subsidiaries under Singapore-based conglomerate Jardine Cycle & Carriage. The purchase includes businesses and dealerships operating under the Cycle & Carriage (C&C) brand in Singapore and Malaysia. The deal is reported to be worth USD $207 million (AUD $290 million).
Cycle & Carriage holds dealerships for automotive brands, including Mercedes-Benz and Kia. Chandra Asri’s purchase of the Cycle & Carriage’s businesses include these dealerships, which were valued at USD $292 million (AUD $408 million) as of 30 June. According to JC&C, Chandra Asri’s payment will be used to reduce its liabilities.
On 30 July, JC&C announced that it would change its name to Jardine Matheson Southeast Asia. Though it operates in Southeast Asia, JC&C is part of the Hong Kong-based Jardine group. The group also announced that its sale to Chandra Asri will “crystallize value” for its C&C businesses. JC&C intends to shift its focus to the Indonesia and Vietnamese markets in the Southeast Asian region.
“We are of the view that Cycle & Carriage will be well-positioned within the Chandra Asri Group’s ecosystem to leverage synergies and collaboration opportunities that can strengthen competitiveness and support future growth,” the company wrote.
Chandra Asri’s growth
Its acquisition of C&C is another milestone in Chandra Asri’s expansion in Southeast Asia. Prior to the C&C deal, Chandra Asri also acquired Exxon Mobil’s Esso retail fuel network in Singapore.
“The proposed acquisition of Cycle & Carriage will represent another important milestone in Chandra Asri Group’s transformation into a leading regional energy & chemicals, infrastructure, and mobility solutions provider,” said Erwin Ciputra, Chandra Asri’s CEO.
“Cycle & Carriage has a strong heritage, trusted brands, and an experienced team. We look forward to supporting the business for its next phase of growth while continuing to serve customers and partners with the quality and reliability they have come to expect,” the CEO added.
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