United Motors completes Rs. 700 million acquisitions of Dutch Lanka Group
Daily FT: United Motors Lanka PLC (UML) has completed the acquisition of the Dutch Lanka Group for Rs. 700 million.
In a filing to the Colombo Stock Exchange, UML said that the acquisition includes 100% stake in Dutch Lanka Trailer Manufacturers Ltd., (DLT) and its fully owned subsidiary Dutch Lanka Engineering Ltd (DLE).
DLT is a Board of Investment registered company in 1992 and is engaged in the design, engineering and manufacture of a range of port and road trailers for both domestic and export markets.
DLT established DLE in 2004 and the latter manufactures trailers for the local market, provides aftermarket service support, supplies spare parts for trailers and undertakes steel fabrication work and refurbishment.
The completion follows a Share Purchase Agreement between UML and DLT owner TRF Singapore Ltd., in October.
The UML Group market’s renowned automotive brands such as Mitsubishi passenger and Fuso commercial vehicles from Japan, Perodua compact cars from Malaysia, JMC commercial vehicles, Brilliance vans and Zotye cars from China, and DFSK SUVs from Indonesia.
It also distributes LiuGong concrete mixing equipment and forklifts from China, Greaves power generators from India, Yokohama tyres from Japan, Valvoline lubricants, Prestone and Simoniz car care products from USA and JCB earth moving equipment and power generators from India. The company’s latest range of products in the market include 3D Printers from USA, Netherlands, Singapore and China and Nasiol nano coating products from Turkiye. The UML Group has over 2,500 dealers countrywide for the distribution of tyres, genuine parts, lubricants, with representatives in both urban and rural areas.
OSL take:
The recent acquisition recorded by Sri Lanka’s United Motors is a further indication of the resilience, strength and growth of the country’s private sector. It is important to note that the local businesses had managed to record profits and stay afloat even amidst challenging economic conditions faced by Sri Lanka in the past few years. A resilient economy is key to any country working towards becoming an emerging business destination and Sri Lanka has so far proven this factor in the manner in which the country had steered through tumultuous times. Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country with others have all helped boost Sri Lanka’s growth potential. Given the expanding business/investment opportunities in Sri Lanka and the growing business potential in the country’s key economic sectors, foreign businesses/investors could explore the growing business/investment opportunities in the country. Foreign businesses could also look at forming partnerships or joint ventures with local businesses with the aim of further expansion.
| Article Code : | VBS/AT/20240103/Z_5 |