Key facts
- Chandra Asri Pacific will acquire Cycle & Carriage's automotive businesses in Singapore and Malaysia.
- The transaction is valued at S$265 million.
- The deal includes the sale of automotive entities and associated trademarks.
- Jardine Cycle & Carriage plans to use the proceeds to reduce its net debt.
- This acquisition represents Chandra Asri's entry into the automotive sector.
Chandra Asri Pacific, an Indonesian petrochemical producer controlled by tycoon Prajogo Pangestu, has agreed to purchase Jardine Cycle & Carriage's automotive distribution and retail operations in Singapore and Malaysia for S$265 million (US$208 million). This marks the energy and petrochemical group's initial venture into the automotive sector, complementing its existing energy business in Singapore and recent acquisition of the Esso-branded fuel retail network.
The deal, subject to partner approvals and customary conditions, involves the sale of automotive entities and associated trademarks across Singapore, Malaysia, and Myanmar to Chandra Asri's subsidiary, CCHPL Holdings. Jardine Cycle & Carriage stated that the proceeds will be used to pay down corporate net debt, and the transaction is expected to generate a gain on disposal of approximately US$221 million.
Jardine Cycle & Carriage, which has operated since 1899, represents brands including Mercedes-Benz, Kia, and Mitsubishi in Singapore, and is a Mercedes-Benz dealer in Malaysia. The company also offers used car sales, vehicle leasing, and EV supply to logistics firms. Jardine Cycle & Carriage's Indonesian subsidiary, Astra International, which is not part of this deal, handles brands like Toyota and BMW.
Chandra Asri views the acquisition as a significant step in its transformation into a regional provider of energy, chemicals, infrastructure, and mobility solutions. This move builds on the group's recent expansion in Singapore, including the acquisition of Shell's refinery and petrochemical assets and the Esso retail fuel network. Jardine Cycle & Carriage, in turn, aims to crystallize value from the Cycle & Carriage business to focus on its core markets in Indonesia and Vietnam.