“UMW is already a dominant automotive player with a 52% share of the local market, and the exercise is expected to bring the share up to 55%. The enlarged entity will create greater value for all our stakeholders and allow us, as a Malaysian multi-national company, to play a better role in growing the national automotive industry,” he told the national news agency.
“Besides broadening our earnings base, our presence in other parts of the value chain creates resilience against changing retail models,” he said. As for Perodua, Jeffri said the automaker holds a dominant market share in the local automotive industry and as such, is the largest value component in the transaction.
Jeffri said the group will undertake a thorough review of UMW’s portfolio of brands to assess the compatibility against its existing portfolio, ensuring that SD continuously maintains a strong spectrum of products and services to enhance value for its shareholders. He said the post-acquisition integration would have minimal operational disruptions, as the group is committed to maintaining the integrity of Sime Darby and UMW and capitalising on synergies. “We care deeply about our commitment to all principals. We will manage each brand separately and continue to build on the excellent work with our enterprising spirit and forward-thinking mindset,” he explained.