SIME DARBY SELLS AUSSIE, NZ UNITS

Group divests Peugeot and Citroen businesses to Inchcape and Rick Armstrong Motor effective June 1

SIME Darby Bhd has reached an agreement to sell its car distribution companies in Australia and New Zealand. These companies import and distribute Peugeot, Citroen and DS car brands in the two markets.

Sime Darby said the indirect wholly-owned subsidiaries of Sime Darby Motors had yesterday entered into assets sale agreements with the respective parties for the disposal of assets relating to Peugeot and Citroen businesses there.

The acquirers are Inchcape Australia for the Australian business and the Rick Armstrong Motor Group for the New Zealand business.

It is expected that effective June 1, these companies will take over the Australasian distribution for the PSA brands.

Sime Darby Motors managing director for Australia and New Zealand, Patrick McKenna, said: “After careful consideration, a decision was reached to divest the Australasian distribution businesses. This is in line with Sime Darby Motors’ strategy to focus on the expansion of its retail car and commercial truck footprints on both sides of the Tasman.

“Once the decision was made, accounting firm KPMG was engaged to conduct a full tender process for the sales on our behalf.”

McKenna said throughout the sale process, it had been the group’s priority to ensure that the vast majority of its employees in both countries would be offered employment under their existing terms and conditions.

“I would like to acknowledge this terrific group of people and wish them well in the future.”

Sime Darby Motors is a leading player in the retail, distribution and assembly businesses in the Asia-Pacific region, with a strong presence spanning 10 countries.