Sime Darby successfully finalises full acquisition of UMW

KUALA LUMPUR: Sime Darby Bhd has triumphantly finalized the acquisition of a complete 100 percent stake in UMW Holdings Bhd (UMW) for RM5.84 billion, seamlessly integrating it as a wholly-owned subsidiary.

According to Bernama, Group Chief Executive Officer of Sime Darby, Datuk Jeffri Salim Davidson, stated that this significant milestone is a clear indication of the market's confidence in the strategic direction of the group and the value it aims to create with UMW.

 

 He said that their main focus now is on completing the integration of UMW into the broader Sime Darby ecosystem. By leveraging their collective strengths, especially in the automotive and industrial sectors, they aim to enhance their competitive edge and expand their domestic footprint to drive long-term growth, he mentioned in a statement.

Jeffri Salim explained that the acquisition aligns with Sime Darby's five-year strategic master plan to expand its core industrial and automotive businesses across key regional markets and strengthen its revenue contributions from Malaysia.

This move reaffirms the group's commitment to driving innovation and growth while contributing to Malaysia's economic development.

Meanwhile, UMW's Managing Director, Mustamir Mohamad, expressed that joining the Sime Darby family as a key business unit marks a new and exciting chapter, allowing it to capitalize on new opportunities and share expertise.

"As we ensure a smooth business continuity during the integration, we look forward to growing as part of Sime Darby, steadfast in our commitment to delivering excellence to all our stakeholders," he said.

Sime Darby had announced in August 2023 that it acquired a 61.2 percent stake in UMW from its parent company, Permodalan Nasional Bhd (PNB), for RM3.57 billion, followed by a mandatory general offer to purchase the remaining 38.8 percent equity interest for approximately RM2.27 billion.

The incorporation of UMW into its portfolio significantly bolsters Sime Darby's position as one of Malaysia's leading conglomerates in the automobile sector.

Sime Darby Motors has a diverse portfolio in the automotive industry, which includes involvement with brands such as BMW, offering sales and services for BMW cars. They also operate dealerships for Ford, providing sales and servicing for Ford vehicles. Hyundai is another brand under their umbrella, with Sime Darby Motors involved in selling and servicing Hyundai cars. Additionally, they have investments in dealerships for Jaguar Land Rover, focusing on the sales and service of these luxury vehicles.

BYD too became a member of Sime Darby in December 2022, marking a significant step towards revolutionizing the electric vehicle (EV) experience in Malaysia .

Incorporating BYD into the Sime Darby family represents a monumental stride towards dominating the electric vehicle (EV) market. With BYD, one of the largest, if not the premier, EV brands now under its umbrella, Sime Darby significantly enhances its position in the rapidly growing EV sector.

Also Read:  Sime Darby set to dominate Malaysia's car market