Motus Group Manages To Fully Acquire Renault South Africa
Motus Group Manages To Fully Acquire Renault South Africa. JSE-listed automotive group Motus has acquired the remaining 40% shareholding in Renault South Africa it did not own from Renault France in a transaction valued at R250 million. The tribunal said the shares in Renault SA were held by Renault France and Motus Car Imports, a wholly owned subsidiary of Motus, and post-merger Motus will wholly own and control Renault SA.
Motus CEO Osman Arbee confirmed to MoneyWeb that Motus owned 60% of Renault SA prior to the transaction and Renault France has for the first time given Motus an exclusive 10-year distribution agreement. Arbee said the distribution agreement had to be renewed every five years when Motus only had majority control of Renault SA. Commenting on the rationale for the transaction, Arbee told MoneyWeb that it is very difficult “when you are dealing with a factory as your shareholder”.
“Their objective is to keep their factory busy and your objective is to be a profitable business. So our objectives were not aligned. We were very fortunate that Renault’s current CEO Luca de Meo thought like us and gave them the approval, which is why we signed the deal,” said Arbee.
He said Motus also had to watch its cost base when Renault France owned a stake in Renault South Africa “because I had another shareholder”. Arbee told MoneyWeb that Renault France wanted Motus to operate an independent Renault warehouse and the group can now start sharing warehouses and parts distribution facilities. “I can also open and close dealerships where I want to.” Arbee said.
He also told MoneyWeb that Corné Venter, CEO of Motus Retail and Rental, is now running all the dealerships whereas previously six dealerships were run by the importers and the balance were run by independents. He said Motus can now manage more dealerships, decide on Renault’s dealership footprint, and does not require permission anymore in managing the business. Arbee said Motus will also get synergies from wholly-owning Renault SA, including operational, dealerships, parts distribution and foreign synergies.
