Car & General Limited, a fully owned subsidiary of Car & General (K) PLC, has entered a share purchase agreement with CMI Africa Holdings BV (Cummins BV) in a move to fully acquire the company.
Car & General announced their latest venture in a statement dated February 16, 2023.
“Car & General (Trading) Limited (C&G), a wholly owned subsidiary of Car & General (K) PLC. has on 16th February 2023, entered into a share purchase agreement with CMI Africa Holdings BV (Cummins BV) for the acquisition of fifty percent (50%) of the shares in Cummins C&G Holdings Limited (the Cummins CG) from Cummins BV (the Transaction),” the statement read.
According to C&G, it will have 100 per cent ownership of the shares in Cummins CG and while the ownership structure will change, C&G's commitment to the region remains unchanged.
“Following completion of the transaction, C&G will own one hundred percent (100%) of the shares in the Cummins CG. Although the ownership structure of the business will be changing. The commitment to the region remains unchanged by both Car & General and Cummins,” C&G said.
C&G entered into the joint venture with Cummins BV in 2017, which has been fruitful, and now the move to fully acquire the shares in Cummins BV is expected to provide a platform for further growth.
Despite the acquisition, Cummins CG will continue to operate under C&G as a fully owned subsidiary in the Eastern African Region.
The completion of the transaction now awaits the approval from the regulatory authorities within 90 days.
Car & General (Kenya) PLC has appealed to its shareholders and the public to exercise caution when dealing with matters concerning the company's shares.
