Published on April 4th, 2023 | by Subhash Nair0
Mercedes-Benz Indonesian Operations Bought By Inchcape’s Indomobil
Mercedes-Benz has had an official presence in Indonesia since 1970.
Inchcape, the global automotive distributor, has expanded its distribution footprint in Indonesia through the acquisition of Mercedes-Benz’s business in the country. The deal was announced on the London Stock Exchange and involved Inchcape’s local partner Indomobil. The acquisition will see Inchcape acquire 70% of the equity of existing Mercedes-Benz subsidiaries in Indonesia, with Indomobil getting the rest. The deal is poised to take place later this year for an undisclosed sum.
This acquisition is expected to reap Inchcape an additional £200m revenue each year, and it marks a significant milestone for the company as it continues to strengthen its position in the Asia-Pacific (Apac) region.
The Mercedes-Benz business in Indonesia has been in operation since 1970, and it includes both distribution and assembly operations. In the early years, the company cooperated with Volkswagen for just under a decade before going their separate ways. The subsidiary went through multiple changes throughout the years from assembling commercial and passenger vehicles in Tanjung Priok and then Wanaherang to having the first ISO 9001 accredited plant in the country. The previous President and CEO of Mercedes-Benz Malaysia, Dr Claus Weidner was posted as CEO of Mercedes-Benz Indonesia before his time in our country.
Ruslan Kinebas, CEO of Inchcape for the APAC region, expressed his pleasure at the acquisition, stating that the company looks forward to combining its local expertise with its leading digital and data capabilities to grow the business further. He added that the acquisition is an excellent example of Inchcape’s role as the partner of choice for OEMs as they work to optimise their global operations.
The acquisition is also set to further cement Inchcape’s strong relationships in the region. Inchcape’s expansion in the APAC region follows the signing of an agreement with Philippines-based CAT Motors earlier this year, which saw it take a majority stake in the company and strengthen its relationships with manufacturers including Mercedes-Benz. In the APAC region, Inchcape has a presence in Hong Kong, Thailand, Brunei, Macau, Singapore, Guam, Saipan and Australia.