CAR Group buys majority stake in Brazil's Auto Avaliar
Key points
- Webmotors has agreed to buy 51% of Auto Avaliar for 543 million Brazilian reais.
- The deal is not expected to materially impact consolidated revenue or earnings.
- The acquisition expands digital wholesale vehicle valuation and trading services in Brazil.
CAR Group (ASX:CAR) subsidiary Webmotors has agreed to acquire a 51% stake in the Brazilian digital B2B platform Auto Avaliar for 543 million Brazilian reais.
The announcement follows recent media commentary regarding the transaction in Brazil after public regulatory review procedures commenced.
The transaction is not expected to have a material impact on the company's consolidated revenue or earnings.
Auto Avaliar operates as a digital B2B platform that facilitates used vehicle valuation and trading across dealerships, independent retailers, and rental companies.
Final completion remains subject to regulatory approvals from the Brazilian Administrative Council for Economic Defence (CADE) and the Central Bank of Brazil, along with customary closing conditions.
The company stated that Webmotors will continue expanding its automotive services network across South America.
Following the announcement, the CAR Group share price was unchanged at $24.36.
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