Inchcape plc, the world’s leading independent multi-brand automotive distributor, and Derco, the Chilean-based automotive distributor announced yesterday that they have entered into an agreement to carry out a business combination, which will allow Inchcape to acquire Derko and the shareholders of the latter to join the share ownership of Inchcape.
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Both companies have an important participation in the vehicle market in Colombia. For its part, Derco is a vehicle distributor in Chile, Peru, Bolivia and Colombia, with brands in the country such as Citroën, Suzuki and DS.
Inchcape owns Praco Didacol, with the brands Jaguar Land Rover, Subaru, DFSK, Hino and Mack, among others.
The operation is valued at a little more than US$1,500 million and when it is concluded, the owners of Derco will become shareholders of Inchcape with a 9.3% participation.
The business that was carried out in London was managed by J.P. Morgan, Bain & Company, Barros & Errazuris, and White and Caseamong others, who ensured strict compliance with the interests of their clients and that the business complied with the legal regulations of Chile and England.
The business is now subject to the fulfillment of the conditions of the transaction and the approval of the local regulatory authorities (England and Chile), the operation is expected to be completed in late 2022 or early 2023, according to those involved.
“Derco is a wonderful business. We are excited to combine our strength in Latin America with Derco’s to create opportunities for our customers, OEMs and employees. This is a great investment in Derco’s markets in Chile, Colombia, Peru and Bolivia, which we believe have extraordinary potential for growth.”said Duncan Tait, CEO of the Inchcape Group.
LOCAL BUSINESS
So far this year in Colombia Derco, only with the Suzuki brand, has placed 9,473 units and records a growth of 121.7%. It also remains in the ‘top’ of the best-selling brands. And DS is the brand that grew the most in the premium segment in the semester at a strong rate of 92.9%. The union of these two brands will also give them a greater market share, and surely in the mass and premium segments they will give something to talk about in the market.
For now, Derco in Colombia will have one of its new products fairs this weekend at Unicentro in Bogotá, an event that has resulted in sales growth on previous occasions.
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