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Eagers Automotive Shares Surge on Plan to Acquire Full Ownership of BYD Venture
Eagers Automotive (ASX:APE) shares surged on Monday after the Australian auto retailer announced it had entered an agreement to acquire the remaining 20% ownership stake in its joint venture with Chinese electric vehicle giant BYD.
The Acquisition
In a statement, Eagers Automotive said it would pay for the stake using a combination of cash and company stock, though it did not disclose the specific financial terms of the deal. The transaction consolidates Eagers' control over the exclusive national retail operations for BYD vehicles in Australia.
The company expects the deal to be completed by the end of October. According to Eagers, the acquisition is projected to be 5.0% to 5.5% earnings accretive, signaling a positive impact on its future profitability.
Market Reaction
Investors responded favorably to the news, sending shares of Eagers Automotive up 7% to trade at A$20.05 on the Australian Securities Exchange. The move reflects market confidence in the company's strategy to fully integrate the fast-growing BYD brand into its operations.
AdStrategic Partnership
Eagers Automotive first established the joint venture with BYD in 2022, securing its position as the exclusive national retailer for the EV maker's models. The partnership has deepened over time:
- In 2023, Eagers increased its holding in the venture to 80%.
- A new long-term agreement with BYD was announced in 2025.
This final buyout marks a significant step in solidifying Eagers' long-term commitment to distributing one of the world's largest EV brands within the Australian market.
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